What is the ruling on selling one currency for another currency with deferred payment?
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The questioner : This questioner, Abd al-Hakim Sulayman from Iraq, Baghdad, asks: What is the ruling on selling one currency for another currency with deferred payment? Please inform us, may Allah reward you.
The Shaykh : Selling one currency for another currency with deferral is not permissible according to the opinion I choose. It is well known that these paper currencies did not exist in the past but were issued recently. For this reason, the scholars differed regarding their ruling, with some scholars reaching six opinions. I choose from among them that deferral is not permissible in them, but excess is permissible. This means that it is not permissible to exchange a dinar for a dollar with deferral, whether the deferral is stipulated or the possession is delayed without being stipulated. So if you want to sell dollars for dinars, you must take the dollars and deliver the dinars in the assembly.
The questioner : Yes.
The Shaykh : Without delay.
Likewise, if you want to sell the dollar for Saudi riyals, it is necessary to take the consideration in the assembly, hand to hand.
As for the increase and decrease, it is not forbidden due to the difference in type. The Prophet (peace and blessings be upon him) said:Musannaf Ibn Abi Shaybah 12:2514 The difference in type occurs due to the difference in the issuing state of this currency and the difference in the material from which this currency was made.
Based on this, if a person exchanges ten Saudi riyals of paper for nine Saudi riyals of metal, there is nothing wrong with it, but it must be hand to hand.
In summary, the answer is that riba al-nasi'ah (usury of deferment) applies to these paper currencies, meaning that it is forbidden to delay the possession from both sides or from one of them beyond the assembly of the contract. As for riba al-fadl (usury of excess), it is not forbidden due to the difference in type, so increase and decrease are permissible, and there is no blame in this. Therefore, if you exchange one currency for another currency with deferral, that is forbidden and not permissible. Or if you exchange one currency for another currency on a spot basis but the two considerations are not received in the assembly, that is also not permissible. Yes.
The questioner : May Allah bless you.
The Shaykh : Selling one currency for another currency with deferral is not permissible according to the opinion I choose. It is well known that these paper currencies did not exist in the past but were issued recently. For this reason, the scholars differed regarding their ruling, with some scholars reaching six opinions. I choose from among them that deferral is not permissible in them, but excess is permissible. This means that it is not permissible to exchange a dinar for a dollar with deferral, whether the deferral is stipulated or the possession is delayed without being stipulated. So if you want to sell dollars for dinars, you must take the dollars and deliver the dinars in the assembly.
The questioner : Yes.
The Shaykh : Without delay.
Likewise, if you want to sell the dollar for Saudi riyals, it is necessary to take the consideration in the assembly, hand to hand.
As for the increase and decrease, it is not forbidden due to the difference in type. The Prophet (peace and blessings be upon him) said:
Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt, like for like, hand to hand. If these types differ, then sell as you wish, provided it is hand to hand.
الذهب بالذهب والفضة بالفضة والبر بالبر والشعير بالشعير والتمر بالتمر والملح بالملح مثلا بمثل يدا بيد فإذا اختلفت هذه الأصناف فبيعوا كيف شئتم إذا كان يدا بيدBased on this, if a person exchanges ten Saudi riyals of paper for nine Saudi riyals of metal, there is nothing wrong with it, but it must be hand to hand.
In summary, the answer is that riba al-nasi'ah (usury of deferment) applies to these paper currencies, meaning that it is forbidden to delay the possession from both sides or from one of them beyond the assembly of the contract. As for riba al-fadl (usury of excess), it is not forbidden due to the difference in type, so increase and decrease are permissible, and there is no blame in this. Therefore, if you exchange one currency for another currency with deferral, that is forbidden and not permissible. Or if you exchange one currency for another currency on a spot basis but the two considerations are not received in the assembly, that is also not permissible. Yes.
The questioner : May Allah bless you.