The Ruling on Financial Transfers Between Countries in Different Currencies

The questioner:
Honorable Shaykh, what is the ruling on transfers, where you give the money changer Saudi riyals here, and another person receives the amount in another country in that country's currency?

The Shaykh:
This is currency exchange. This is currency exchange. However, if the money is sent and received there in the same currency without exchange, there is no harm. A transfer is fine. Or if a person owes you a debt in another country and you transfer it to someone else, that is not a problem. This is called a transfer (hawalah). But if you give him money here and he gives you money in exchange in another country, that is currency exchange, so it is not permissible except hand-to-hand in the same session. Yes.

The questioner:
Honorable Shaykh.

The Shaykh:
But some scholars at this time say that if a trusted Shaykh receives the currency in the currency he wants in the other country, they say the Shaykh takes the place of receipt. Allah knows best. I am not convinced by this, because the Shaykh is merely a guarantor, and he has receipt, but the substitute is not present in the session. So it has not become clear to me that it is permissible for the Shaykh to take the place of receipt. Yes.