What is the ruling on working in currency exchange?

The questioner : What is the ruling on working in the exchange of currency?

The Shaykh : It is not permissible, of course, to work in currency exchange, which many people are afflicted with today, because in reality it has become like gambling, with its ups and downs, losses and gains. But originally, if there were not this fluctuation in these papers, as is known to everyone, there is no difference between a scholar and an ignorant person; they have no intrinsic value. They have no intrinsic value; their value is based on what was previously stored for them in gold, and apparently recently in a certain amount, though I do not know what to call it, for it is not a reality. In the past, when I was young, I used to hear that the Syrian pound was equivalent to a certain number of grams of gold, meaning you could take a certain number of Syrian notes and go to the bank and receive gold. Now, practically, nothing of this remains. So let us say they have an estimated value, but this value, although estimated, is not fixed; it goes up and down, and so on. The greatest proof of this is the disasters that have struck some countries, such as Lebanon. The Lebanese pound had a very strong value, then it fell, followed by the Syrian pound, then the Iraqi dinar. These papers have become a mockery of currency. Whereas if these were metal, gold or silver, it is true that they might rise and fall relatively, but they would not fall to the extent that these paper currencies fall. The point of this introduction is that it was supposed to be that, for example, in the time of the strength of the Iraqi dinar, you would buy an Iraqi dinar with a Jordanian dinar, and in addition, the Iraqi dinar was more expensive. But now, the Jordanian dinar is more expensive than the Iraqi dinar by several times; I do not know how many. I know a relative of ours who, when the Gulf War ended and the Iraqi currency had completely collapsed, heard the news that the Iraqi dinar had started to rise, so he rushed to the market and bought Iraqi dinars with all his Jordanian dinars. Then he was surprised to find that the decline continued, and he lost a huge amount of money. Therefore, we do not permit the profession of currency exchange, and we do not permit exchange except out of necessity for dealing with money, buying and selling to meet needs only. For example, a person who wants to go to Hajj to the Hijaz for Hajj or 'Umrah must buy Saudi currency, so he buys it, but not to wait for an opportunity where this goes down and that goes up. No, we do not see this at all, except within the limits of necessity.

The questioner : For example, the exchangers, each gives you a price, meaning regarding taking the extra money?

The Shaykh : Within the limits of necessity, there is no objection to you setting the most suitable price. I tell you, within the limits of necessity, there is no objection, just like any commodity you want to buy from the market.