What is the ruling on what some merchants do in distinguishing between the new and old Iraqi dinar?

The questioner: His EminenceThe Shaykh : You know what happened in Iraq during and after the Gulf War regarding the deterioration of the Iraqi economy. The Iraqi government issued a new currency while also keeping the old currency. Consequently, some merchants outside Iraq, such as merchants in Jordan or Turkey, sell us goods at two prices, one for the old and one for the new. The old dinar is cheaper than the new one. Similarly, when buying hard currency, such as the dollar, the price is different for the old and the new. Buying one dollar with the old currency is approximately one Iraqi dinar less than buying one dollar with the new currency. This situation applies to all goods, foodstuffs, and others. What is the ruling on this?

The Shaykh : Is this difference due to the state that issued the new currency, or is it due to the merchants?

The questioner : Yes, it is due to the merchants. The state has a unified currency.

The Shaykh : Meaning the new one is like the old one.

The questioner : Like the old one in the state, because it pays salaries.

Another questioner : People have adopted it. The merchants here in Jordan consider the new currency to be unsupported by the international bank, meaning it is not printed in Switzerland, so they consider it the old currency. That is, it is...

The Shaykh : The one recognized internationally.

Another questioner : Therefore, its value is higher than the new one. It is printed in Iraq, a print that is essentially free of charge, without backing.

The Shaykh : Yes, exactly.

The questioner : In the currency exchange market, whether I exchange an old Iraqi dinar or a new one, it is considered the same. It is valid with the government and for us inside Iraq, one dinar for one dinar.

The Shaykh: Yes.

The questioner : Because the state pays the salaries of its employees from this and that.

The Shaykh : Yes, at one price.

The questioner : At one price. In this situation, when a merchant needs to import goods from Jordan, for example, or Turkey, because these are the only two outlets, the old dinar is difficult for us. So what happened with this phenomenon is that the merchant buys with the old dinar, but buys it with the new one at a difference.

The Shaykh : Yes.

The questioner : Here, gold differs from gold, and silver from silver.

The Shaykh : This is a problematic phenomenon indeed.

The questioner : It is a problem, and we do not find a solution for it, to be honest. We are afraid of falling into matters of riba (usury or interest).

The Shaykh : What appears to me, and Allah knows best, is that it is not permissible to trade with this new currency. In other words, it is not permissible for one who has the old currency to buy the new currency at a price lower than the old one. Is the answer clear up to this point?

The questioner : Yes, yes.

The Shaykh : Yes, but the reverse is not permissible. The reverse is permissible.

The questioner : It is permissible.

The Shaykh : That is, if you have the new currency and do not have the old currency, and you want to buy something, the merchant from whom you want to buy that item, despite your objection, values this new dinar at less than the old dinar. So, to fulfill your need, it is permissible for you to buy the goods with the new currency, with the price difference from the old currency.