We are from Sudan, and when we want to transfer money to the Sudanese currency through currency dealers, they say that if you want the exchange immediately, the riyals should be received here and your family should receive the Sudanese currency there.
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The questioner : May Allah forgive us and you, O honorable Shaykh: This is a question directed from a group of Sudanese brothers. They say: To the honorable scholars, the people of knowledge, may peace and the mercy and blessings of Allah be upon you. After that: Please inform us, may Allah reward you with the best reward for us and for the Muslims: We are your Sudanese brothers residing in this hospitable country. When we want to transfer our money from the Saudi currency to the Sudanese currency, there are dealers who buy this currency from us. They tell us: If you want immediate delivery, meaning that the riyals are received here and our family receives the Sudanese currency from him there, this has a rate. If we want to leave it with him for a period of one or two months or more, this has a special rate, and the longer the delivery period, the higher the transfer value.
The Shaykh : Delete the second "the longer"; the longer it is, the higher it is.
The questioner : And the longer the delivery period, the higher the transfer value, meaning that it is a deferred transfer. Is it valid for us to exchange with these dealers, knowing that the bank exchange rates are very low compared to the dealers' immediate and deferred rates? And if the exchange with them is valid, is it valid in both the immediate and deferred cases, or is it valid in one of them without the other? May Allah reward you with the best reward for us, your Sudanese brothers by nationality?
The Shaykh : It is well known that exchange in currencies involves riba (usury or interest) regarding deferment, meaning that it is not permissible to delay the receipt of payment, neither by the payer nor by the payee. This is because the Prophet (peace and blessings be upon him) said:Sahih Muslim 1587c. Therefore, if a person wants to exchange Saudi riyals for Sudanese pounds, it is obligatory that the consideration be received by both parties, the payer and the payee, and it is not permissible to delay the receipt.
Accordingly: The correct form is that the Sudanese person hands Saudi dirhams to the bank and takes the equivalent in Sudanese pounds in his hand. Then he tells the bank: Take it a second time and transfer it to Sudan for me. This is what has no problem; this is a good and excellent transaction.
The second form is that he tells the bank: These are Saudi dirhams, transfer them to Sudan as Saudi currency, and there the person to whom it is transferred receives it in Sudanese pounds at the rate there, not at the rate here. For example, if the rate in Saudi Arabia is, say, two riyals for the Sudanese pound, and there it is three, we must consider the rate there. And vice versa, if it is three here and two there, we must consider the rate there.
These are two forms with which there is no problem. The first form: the exchange takes place here, then the Sudanese currency is transferred to the bank there in Sudan. The second form: the Saudi riyals are transferred to Sudan as Saudi currency, and then the exchange takes place there hand-to-hand at the rate of the Saudi riyal there, not here. These are two permissible forms, and anything other than them is not permissible.
And what was mentioned in the question is more sinful, because it involves delaying the receipt and riba al-nasi'ah (usury of deferment) by increase. This becomes darknesses, some of them upon others. So we say to the Sudanese brothers and others who are in their situation: The sound path is built on two aspects, and they have already been mentioned.
The questioner : In the name of Allah, the Most Gracious, the Most Merciful.
Your Eminence, the Shaykh.
The Shaykh : Huh? That is enough, my brother, the right belongs to the one who came from long distances.
The questioner : O Shaykh, this is a question.
The Shaykh : If you speak, then speak justly.
The questioner : ...
The Shaykh : No, it does not contradict.
The questioner : I ask, does it contradict?
The Shaykh : No, but we said that the one from this country should not let the time pass, and it is less than half an hour.
The questioner : ...
The Shaykh : It does not contradict, it is a special matter. The brothers from here can ask at any time, if Allah wills.
The Shaykh : Delete the second "the longer"; the longer it is, the higher it is.
The questioner : And the longer the delivery period, the higher the transfer value, meaning that it is a deferred transfer. Is it valid for us to exchange with these dealers, knowing that the bank exchange rates are very low compared to the dealers' immediate and deferred rates? And if the exchange with them is valid, is it valid in both the immediate and deferred cases, or is it valid in one of them without the other? May Allah reward you with the best reward for us, your Sudanese brothers by nationality?
The Shaykh : It is well known that exchange in currencies involves riba (usury or interest) regarding deferment, meaning that it is not permissible to delay the receipt of payment, neither by the payer nor by the payee. This is because the Prophet (peace and blessings be upon him) said:
If these classes differ, then sell as you wish if payment is made hand to hand.
إذا اختلفت هذه الأصناف فبيعوا كيف شئتم إذا كان يداً بيدAccordingly: The correct form is that the Sudanese person hands Saudi dirhams to the bank and takes the equivalent in Sudanese pounds in his hand. Then he tells the bank: Take it a second time and transfer it to Sudan for me. This is what has no problem; this is a good and excellent transaction.
The second form is that he tells the bank: These are Saudi dirhams, transfer them to Sudan as Saudi currency, and there the person to whom it is transferred receives it in Sudanese pounds at the rate there, not at the rate here. For example, if the rate in Saudi Arabia is, say, two riyals for the Sudanese pound, and there it is three, we must consider the rate there. And vice versa, if it is three here and two there, we must consider the rate there.
These are two forms with which there is no problem. The first form: the exchange takes place here, then the Sudanese currency is transferred to the bank there in Sudan. The second form: the Saudi riyals are transferred to Sudan as Saudi currency, and then the exchange takes place there hand-to-hand at the rate of the Saudi riyal there, not here. These are two permissible forms, and anything other than them is not permissible.
And what was mentioned in the question is more sinful, because it involves delaying the receipt and riba al-nasi'ah (usury of deferment) by increase. This becomes darknesses, some of them upon others. So we say to the Sudanese brothers and others who are in their situation: The sound path is built on two aspects, and they have already been mentioned.
The questioner : In the name of Allah, the Most Gracious, the Most Merciful.
Your Eminence, the Shaykh.
The Shaykh : Huh? That is enough, my brother, the right belongs to the one who came from long distances.
The questioner : O Shaykh, this is a question.
The Shaykh : If you speak, then speak justly.
The questioner : ...
The Shaykh : No, it does not contradict.
The questioner : I ask, does it contradict?
The Shaykh : No, but we said that the one from this country should not let the time pass, and it is less than half an hour.
The questioner : ...
The Shaykh : It does not contradict, it is a special matter. The brothers from here can ask at any time, if Allah wills.