What is the ruling on exchanging the Sudanese pound for the Saudi riyal on a deferred basis?
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The questioner : May Allah reward you with good. This questioner says: We want a definitive answer regarding the issue of currency exchange. We are in Sudan, and we sell Saudi riyals for Sudanese pounds, where the delivery of the riyals takes place in this country and the pounds after a while in Sudan. Is this permissible?
The Shaykh : The definitive answer, in our view, regarding this issue is that usury of deferment applies to paper currency, but usury of excess does not, because usury is of two types:
Usury of deferment, which is when the taking of possession is delayed between the two types of usurious items.
And usury of excess, which is when one side exceeds the other.
I will give you an example. If you sell one dirham for two dirhams in cash, hand to hand, this is usury of excess. Why? Because excess is an increase. Okay, if you sell one gold dinar for two dinars in cash, hand to hand, this is usury of excess. Okay, if you sell one dinar for one dinar and do not take possession, this is usury of deferment. If you sell one dinar for two dinars and do not take possession, no, that is wrong. If you sell one dinar for two dinars and do not take possession.
The student: ... .
The Shaykh : You did well. In that case, it involves both excess and deferment. Excess is due to the increase, and deferment is due to the delay. We see that what applies to this paper currency is usury of deferment. Accordingly, if we assume that the Sudanese pound is equal to three riyals, for example, and I do not know the price, the Sudanese person does not say, "You have devalued our currency," meaning which is more expensive, the riyal? Okay, ten Saudi riyals for fifty pounds, that is the price in the market. So a person who needs Sudanese pounds comes and says, "Give me forty for ten," not fifty. Is that permissible or not? It is permissible, because usury of excess does not apply in the category of this currency. But if he says, "Give me fifty for ten," but with a delay in taking possession, this is not permissible, because usury of deferment applies to this currency. The evidence that it is not permissible is the saying of the Prophet (peace and blessings be upon him): On this basis, we say to the brother who sold Saudi currency for Sudanese currency that mutual exchange of possession is necessary.
Okay, if the state prevents the export of that, is it possible, for example, for him to give Saudi riyals now and transfer them to a bank there, and when the transfer reaches the beneficiary, he agrees with the bank to buy Sudanese pounds equivalent to the amount there? Some people say, "I do not know." They say this is also not possible. If it is not possible, then out of dire necessity, we say: there is nothing wrong with delivering Saudi dirhams and taking Sudanese pounds in exchange there out of dire necessity.
The Shaykh : The definitive answer, in our view, regarding this issue is that usury of deferment applies to paper currency, but usury of excess does not, because usury is of two types:
Usury of deferment, which is when the taking of possession is delayed between the two types of usurious items.
And usury of excess, which is when one side exceeds the other.
I will give you an example. If you sell one dirham for two dirhams in cash, hand to hand, this is usury of excess. Why? Because excess is an increase. Okay, if you sell one gold dinar for two dinars in cash, hand to hand, this is usury of excess. Okay, if you sell one dinar for one dinar and do not take possession, this is usury of deferment. If you sell one dinar for two dinars and do not take possession, no, that is wrong. If you sell one dinar for two dinars and do not take possession.
The student: ... .
The Shaykh : You did well. In that case, it involves both excess and deferment. Excess is due to the increase, and deferment is due to the delay. We see that what applies to this paper currency is usury of deferment. Accordingly, if we assume that the Sudanese pound is equal to three riyals, for example, and I do not know the price, the Sudanese person does not say, "You have devalued our currency," meaning which is more expensive, the riyal? Okay, ten Saudi riyals for fifty pounds, that is the price in the market. So a person who needs Sudanese pounds comes and says, "Give me forty for ten," not fifty. Is that permissible or not? It is permissible, because usury of excess does not apply in the category of this currency. But if he says, "Give me fifty for ten," but with a delay in taking possession, this is not permissible, because usury of deferment applies to this currency. The evidence that it is not permissible is the saying of the Prophet (peace and blessings be upon him):
If these types differ, sell as you wish, on the condition that it is hand to hand.
إذا اختلفت هذه الأجناس فبيعوا كيف شئتم - بشرط - إذا كان يدا بيدOkay, if the state prevents the export of that, is it possible, for example, for him to give Saudi riyals now and transfer them to a bank there, and when the transfer reaches the beneficiary, he agrees with the bank to buy Sudanese pounds equivalent to the amount there? Some people say, "I do not know." They say this is also not possible. If it is not possible, then out of dire necessity, we say: there is nothing wrong with delivering Saudi dirhams and taking Sudanese pounds in exchange there out of dire necessity.