Is it permissible to trade in paper currency while it is fluctuating between falling and rising?
Machine translationRead the Arabic original
Abu Layla : One of our brothers has a question about a man who wants to buy currency. It has become cheap in the market, and its price is very low, on the basis that its price will rise. He will sell this currency, of course paper currency. Is that permissible?
The Shaykh : I do not see that as permissible.
Abu Layla : What is the evidence for that?
The Shaykh : The evidence, well, it requires some preliminaries and knowledge. This paper currency has no intrinsic value. Its value is relative to the gold stored for it. Do you understand or what?
Abu Layla : Yes, I am hearing you, my teacher.
The Shaykh : Okay, is it not understood or what?
Abu Layla : Please say it again.
The Shaykh : I said that understanding this issue involves precision, because this paper currency has no intrinsic value.
Abu Layla : Yes, indeed.
The Shaykh : I mean that plain white paper is more useful than this printed paper.
Abu Layla : Yes, indeed.
The Shaykh : But its value is conventional.
Abu Layla : Yes, yes, I understand now.
The Shaykh : The value differs according to the country and the state. For example, a smaller note might have a higher value than another. Is that clear?
Abu Layla : It is clear.
The Shaykh : Okay, if its value is conventional, and the value of this problematic currency is the gold estimated for it, and we are seeing it every day at a price, every day at a price. This Syrian pound, for example, when I came to the country, ten Syrian pounds equaled one dinar. Now it equals a quarter of a dinar.
Abu Layla: Allahu Akbar.
The Shaykh : Yes, since it has no intrinsic value, its value is the gold estimated for it. What prevents it from becoming cheap so that we sell, and when it becomes expensive, and so on, as if we are selling gold for gold?
Abu Layla : Yes, indeed.
The Shaykh : And selling gold for gold is not permissible except in equal amounts, for example, like for like. For this reason, I do not see trading in paper currency.
Abu Layla : May Allah reward you with good, my teacher.
The Shaykh : And you, if Allah wills.
The Shaykh : I do not see that as permissible.
Abu Layla : What is the evidence for that?
The Shaykh : The evidence, well, it requires some preliminaries and knowledge. This paper currency has no intrinsic value. Its value is relative to the gold stored for it. Do you understand or what?
Abu Layla : Yes, I am hearing you, my teacher.
The Shaykh : Okay, is it not understood or what?
Abu Layla : Please say it again.
The Shaykh : I said that understanding this issue involves precision, because this paper currency has no intrinsic value.
Abu Layla : Yes, indeed.
The Shaykh : I mean that plain white paper is more useful than this printed paper.
Abu Layla : Yes, indeed.
The Shaykh : But its value is conventional.
Abu Layla : Yes, yes, I understand now.
The Shaykh : The value differs according to the country and the state. For example, a smaller note might have a higher value than another. Is that clear?
Abu Layla : It is clear.
The Shaykh : Okay, if its value is conventional, and the value of this problematic currency is the gold estimated for it, and we are seeing it every day at a price, every day at a price. This Syrian pound, for example, when I came to the country, ten Syrian pounds equaled one dinar. Now it equals a quarter of a dinar.
Abu Layla: Allahu Akbar.
The Shaykh : Yes, since it has no intrinsic value, its value is the gold estimated for it. What prevents it from becoming cheap so that we sell, and when it becomes expensive, and so on, as if we are selling gold for gold?
Abu Layla : Yes, indeed.
The Shaykh : And selling gold for gold is not permissible except in equal amounts, for example, like for like. For this reason, I do not see trading in paper currency.
Abu Layla : May Allah reward you with good, my teacher.
The Shaykh : And you, if Allah wills.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.