Ruling on the Sale and Purchase of Currencies
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Question:
A message was received for the program from one of the listening brothers. He says: Your brother and your lover in Allah, Mando (A. A.) from Libya. The brother Mando has a collection of questions. In his first question, he asks: If the Libyan dinar is worth approximately three dollars, what is the ruling on one who sells one dollar for one dinar, or one who sells the Libyan dinar for a Tunisian dinar, when the correct value of the Libyan dinar is two Tunisian dinars? We ask you to inform us about this, as this practice has become widespread among people, and they have not even bothered to think about whether this practice is permissible or not. Please guide us and guide the people. May Allah reward you with good.
Answer:
Currencies are considered distinct types. So, if one sells Libyan currency for Tunisian, American, Saudi, or any other currency, there is no harm, provided that it is done hand-to-hand, just as gold is sold for silver hand-to-hand. If one sells a gold pound for silver dirhams hand-to-hand, there is no harm. So, if one sells one currency for another, whether equal, more, or less, there is no harm if it is done hand-to-hand, just as gold is sold for silver hand-to-hand.
The point is that currencies are considered distinct types. The Libyan currency is one type, the Tunisian currency is one type, the American currency is one type, and so are the English and French currencies and the like. The Council of Senior Scholars in our country has studied this issue and held the view we mentioned; they held that currencies are distinct types, and this is what should be adopted. This is because they are considered as prices for sales and values for sales, so they have taken the place of gold and silver. Therefore, every currency that stands on its own and is original in itself is considered an independent type. If it is sold for another currency, that is permissible hand-to-hand.
So, if one sells a Libyan dinar for two or three American dollars, or for a British pound, or less or more, there is no harm in that, but it must be hand-to-hand, and they must exchange possession in the meeting place. There is no deferred payment, and they must not separate until the exchange of possession has taken place. This is based on the saying of the Prophet (peace and blessings be upon him):Mishkat al-Masabih 2808.
His statement that if the types differ, such as the difference between currencies, is the same. They are sold for one another, but hand-to-hand, just as wheat is sold for barley. Even if one goes to the trouble of exchanging hand-to-hand, one sa' of wheat for two sa' of barley, there is no harm, but it must be hand-to-hand. One sa' of dates for two sa' of barley, there is no harm, but it must be hand-to-hand. A pound of gold for one hundred silver dirhams, or fifty dirhams, or more, or less, hand-to-hand, there is no harm. So, an American dollar for two of another currency, or a Libyan dinar for two American dollars, or for another, hand-to-hand, there is no harm in that. Yes.
The presenter: May Allah reward you with good.
A message was received for the program from one of the listening brothers. He says: Your brother and your lover in Allah, Mando (A. A.) from Libya. The brother Mando has a collection of questions. In his first question, he asks: If the Libyan dinar is worth approximately three dollars, what is the ruling on one who sells one dollar for one dinar, or one who sells the Libyan dinar for a Tunisian dinar, when the correct value of the Libyan dinar is two Tunisian dinars? We ask you to inform us about this, as this practice has become widespread among people, and they have not even bothered to think about whether this practice is permissible or not. Please guide us and guide the people. May Allah reward you with good.
Answer:
Currencies are considered distinct types. So, if one sells Libyan currency for Tunisian, American, Saudi, or any other currency, there is no harm, provided that it is done hand-to-hand, just as gold is sold for silver hand-to-hand. If one sells a gold pound for silver dirhams hand-to-hand, there is no harm. So, if one sells one currency for another, whether equal, more, or less, there is no harm if it is done hand-to-hand, just as gold is sold for silver hand-to-hand.
The point is that currencies are considered distinct types. The Libyan currency is one type, the Tunisian currency is one type, the American currency is one type, and so are the English and French currencies and the like. The Council of Senior Scholars in our country has studied this issue and held the view we mentioned; they held that currencies are distinct types, and this is what should be adopted. This is because they are considered as prices for sales and values for sales, so they have taken the place of gold and silver. Therefore, every currency that stands on its own and is original in itself is considered an independent type. If it is sold for another currency, that is permissible hand-to-hand.
So, if one sells a Libyan dinar for two or three American dollars, or for a British pound, or less or more, there is no harm in that, but it must be hand-to-hand, and they must exchange possession in the meeting place. There is no deferred payment, and they must not separate until the exchange of possession has taken place. This is based on the saying of the Prophet (peace and blessings be upon him):
Gold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, and salt by salt, like for like and equal for equal, payment being made on the spot. If these classes differ, sell as you wish if payment is made on the spot.
الذهب بالذهب والفضة بالفضة والبر بالبر والشعير بالشعير والتمر بالتمر والملح بالملح مثلًا مثل سواءً بسواء يدًا بيد، فإذا اختلفت هذه الأصناف فبيعوا كيف شئتم إذا كان يدًا بيدHis statement that if the types differ, such as the difference between currencies, is the same. They are sold for one another, but hand-to-hand, just as wheat is sold for barley. Even if one goes to the trouble of exchanging hand-to-hand, one sa' of wheat for two sa' of barley, there is no harm, but it must be hand-to-hand. One sa' of dates for two sa' of barley, there is no harm, but it must be hand-to-hand. A pound of gold for one hundred silver dirhams, or fifty dirhams, or more, or less, hand-to-hand, there is no harm. So, an American dollar for two of another currency, or a Libyan dinar for two American dollars, or for another, hand-to-hand, there is no harm in that. Yes.
The presenter: May Allah reward you with good.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.