How to Get Rid of Dealing in Riba al-Nasi'ah in Currency Exchange
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This is a question directed from a group of Sudanese brothers, in which they say: To the honorable scholars of knowledge,Peace be upon you, and Allah's mercy and blessings. And after that: Please inform us, may Allah reward you with the best reward for us and for the Muslims. We are your brothers from Sudan, and we are residents in this hospitable country. When we want to convert our money from the Saudi currency to the Sudanese currency, there are merchants who buy this currency from us.And they say to us: If you want immediate delivery,Meaning: that he takes the riyals here and our people receive the Sudanese currency from him there, this has a price. And if we want to leave it with him for a period of one month, two months, or more, this has a special price. And the further the delivery period extends, the higher the value of the conversion becomes.Meaning: It is a deferred conversion. Is it permissible for us to convert with these merchants, knowing that the bank conversion rates are very low compared to the merchants' spot and deferred rates? And if conversion with them is permissible, is it permissible in both the immediate and deferred cases, or is it permissible in one of them without the other? And may Allah reward you with the best reward?
It is well known that currency exchange involves riba in the case of deferment,Meaning: that it is not permissible to delay the taking of possession, neither by the payer nor by the payee;Because the Prophet (peace and blessings be upon him) said: (If these commodities differ, sell as you wish, provided it is hand to hand) So if a person wants to exchange Saudi riyals for Sudanese pounds, it is obligatory that the consideration be taken from both sides, from the payer and the payee, and it is not permissible to delay the taking of possession.
And in light of this: So the correct form is: that the Sudanese person hands Saudi riyals to the bank and takes the equivalent in Sudanese pounds in his hand,Then he says to the bank: Take it a second time and convert it for me to Sudan. There is no problem with this; this is a good and fine transaction.
The second form: That he says to the bank: These are Saudi riyals, convert them to Sudan as Saudi riyals, and there the payee takes them in Sudanese pounds at their price there, not at their price here.For example: If the price in Saudi Arabia is, for example, two riyals for the Sudanese pound, and there it is three, we must consider the price that is there. And vice versa, if it is three here and two there, we must consider the price there.
These are two forms with which there is no problem,The first form: the meeting here and then converting the Sudanese currency to the bank there in Sudan,The second: or converting the Saudi riyals to Sudan as Saudi riyals, and then there the exchange takes place hand to hand at the price of the Saudi riyal there; these are two permissible forms, and anything other than them is not permissible.
And what was mentioned in the question is more sinful; because it involves delaying the taking of possession and it involves riba al-nasi'ah by increase. And this becomes darkness upon darkness, so we say to the Sudanese brothers and others as well:Those who are in their position: The sound path is built on two aspects, and they have been mentioned.
It is well known that currency exchange involves riba in the case of deferment,Meaning: that it is not permissible to delay the taking of possession, neither by the payer nor by the payee;Because the Prophet (peace and blessings be upon him) said: (If these commodities differ, sell as you wish, provided it is hand to hand) So if a person wants to exchange Saudi riyals for Sudanese pounds, it is obligatory that the consideration be taken from both sides, from the payer and the payee, and it is not permissible to delay the taking of possession.
And in light of this: So the correct form is: that the Sudanese person hands Saudi riyals to the bank and takes the equivalent in Sudanese pounds in his hand,Then he says to the bank: Take it a second time and convert it for me to Sudan. There is no problem with this; this is a good and fine transaction.
The second form: That he says to the bank: These are Saudi riyals, convert them to Sudan as Saudi riyals, and there the payee takes them in Sudanese pounds at their price there, not at their price here.For example: If the price in Saudi Arabia is, for example, two riyals for the Sudanese pound, and there it is three, we must consider the price that is there. And vice versa, if it is three here and two there, we must consider the price there.
These are two forms with which there is no problem,The first form: the meeting here and then converting the Sudanese currency to the bank there in Sudan,The second: or converting the Saudi riyals to Sudan as Saudi riyals, and then there the exchange takes place hand to hand at the price of the Saudi riyal there; these are two permissible forms, and anything other than them is not permissible.
And what was mentioned in the question is more sinful; because it involves delaying the taking of possession and it involves riba al-nasi'ah by increase. And this becomes darkness upon darkness, so we say to the Sudanese brothers and others as well:Those who are in their position: The sound path is built on two aspects, and they have been mentioned.