What is the ruling on selling currency at a premium, for example, selling nine iron riyals for ten paper riyals? Some people have started trading in this, so what is the ruling?

The questioner : The question has two parts, O Shaykh.

The Shaykh : We accept it on the condition that it is not two questions.

The questioner : No, if Allah wills, it is one question.

The Shaykh : Yes.

The questioner : We heard, O Shaykh, that you issued a ruling permitting the sale of nine halalas for ten riyals. Is this correct?
And if the answer is yes, what is your opinion now that some people have exploited this ruling by selling four riyals for five riyals, and it has become a trade? If I were to open a shop in this manner and sell in large quantities, for example, starting with a sum of one million riyals, the profit would be enticing.

The Shaykh : The ruling is correct, meaning: the transmission of the ruling from us is correct, and we still issue this ruling, that it is permissible for a person to take nine iron riyals for ten paper riyals, due to the generality of the hadith: , and there is no harm in a person trading in them, because there is benefit for both parties. The one who took the nine for ten benefited by dealing with these nine, because perhaps he would not be able to contact his people except with this currency, and the one who took the increase also benefited. Then, this person who gave you the nine did not take them out of his shop; rather, he brought them from the Monetary Authority or from another place, so he performed a task and brought them to this shop. If the matter needs to be large and in millions, we say: that is the favor of Allah, which He grants to whom He wills. And if Allah has made selling lawful, then we do not restrict Allah’s servants except with a legal proof. The original principle is that all sales are lawful and that riba is forbidden. This is the principle: .