Does riba (usury or interest) apply to the exchange of metal coins with paper currency?
Machine translationRead the Arabic original
The questioner : A fatwa attributed to you has become well-known among the general public, which is: exchanging nine metal riyals for ten paper riyals?
The Shaykh : Yes, that is correct. I mean, I issue a fatwa that there is no harm in a person giving a ten-riyal note and receiving nine metal riyals, due to the difference in kind. The hadith is:Sahih Muslim 1587c.
The questioner : What if the amount is equal to its value alone?
The Shaykh : Its value alone according to the government, but in terms of supply and demand, it is not the same. Do you not know that this silver riyal has a paper equivalent?
The questioner : Yes.
The Shaykh : In the government's pricing, but now what is it worth?
The questioner : It is worth nine riyals for ten paper riyals among people.
The Shaykh : No, no, no. I mean the silver, the original silver, the Arab riyal. Was the paper equivalent to the Arab riyal?
The questioner : It was fifty-six riyals.
The Shaykh : Now, no. Now it is worth four or five riyals for one riyal. Yes.
The Shaykh : Yes, that is correct. I mean, I issue a fatwa that there is no harm in a person giving a ten-riyal note and receiving nine metal riyals, due to the difference in kind. The hadith is:
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 يدا بيدThe questioner : What if the amount is equal to its value alone?
The Shaykh : Its value alone according to the government, but in terms of supply and demand, it is not the same. Do you not know that this silver riyal has a paper equivalent?
The questioner : Yes.
The Shaykh : In the government's pricing, but now what is it worth?
The questioner : It is worth nine riyals for ten paper riyals among people.
The Shaykh : No, no, no. I mean the silver, the original silver, the Arab riyal. Was the paper equivalent to the Arab riyal?
The questioner : It was fifty-six riyals.
The Shaykh : Now, no. Now it is worth four or five riyals for one riyal. Yes.