Ruling on selling one currency for another
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Another message reached us from our brother: Abd al-Satar Musa Mustafa. He says: An Egyptian teacher working in Hodeidah, Yemen. Our brother says: It is known that the expatriate returns to his country and has purchased international currencies such as the dollar, gold pounds, or even any currency other than his country's currency. Then he returns to his country to sell them, seeking the highest price at which to sell them. Some places of sale are official with the state, and others are called the black market. The question is: When does this become riba al-fadl, and what should be done in that case? Please inform us; may Allah reward you.
Answer: The ruling differs. If he sells one currency for another hand-to-hand, there is no riba in that. For example, if he sells the dollar for the Egyptian pound or the Yemeni currency hand-to-hand, there is no harm. Likewise, if he sells any currency for another currency hand-to-hand, there is no riba in that. However, if he sells one currency for another currency with a deferred payment, such as selling the dollar for the Yemeni currency with a deferred payment, or for the Egyptian pound, or the British pound, or the Jordanian or Iraqi dinar, or anything else with a deferred payment, this becomes riba. This is because they are in the position of gold and silver. Therefore, it is not permissible to sell some of them for others with a deferred payment; rather, the exchange must be completed in the meeting.
As for riba al-fadl, this occurs in the currency itself. If he sells a currency for the same currency with a difference in amount, such as selling one British pound for one British pound plus an extra, like one British pound for two, this is riba. Even if it is hand-to-hand, it is riba. Or if he sells ten Saudi riyals for ten or more, ten riyals for eleven riyals, this is riba al-fadl.
And if it is with a deferred payment, it becomes both riba al-fadl and riba al-nasi'ah, containing both types of riba. Likewise, similar cases, such as one dollar for two or three dollars with a deferred payment or immediately. If it is immediate and hand-to-hand, it is riba al-fadl. If it is with a deferred payment, it is both riba al-fadl and riba al-nasi'ah, where both matters coincide. These are the aspects of riba. Yes.
The presenter: May Allah reward you.
Answer: The ruling differs. If he sells one currency for another hand-to-hand, there is no riba in that. For example, if he sells the dollar for the Egyptian pound or the Yemeni currency hand-to-hand, there is no harm. Likewise, if he sells any currency for another currency hand-to-hand, there is no riba in that. However, if he sells one currency for another currency with a deferred payment, such as selling the dollar for the Yemeni currency with a deferred payment, or for the Egyptian pound, or the British pound, or the Jordanian or Iraqi dinar, or anything else with a deferred payment, this becomes riba. This is because they are in the position of gold and silver. Therefore, it is not permissible to sell some of them for others with a deferred payment; rather, the exchange must be completed in the meeting.
As for riba al-fadl, this occurs in the currency itself. If he sells a currency for the same currency with a difference in amount, such as selling one British pound for one British pound plus an extra, like one British pound for two, this is riba. Even if it is hand-to-hand, it is riba. Or if he sells ten Saudi riyals for ten or more, ten riyals for eleven riyals, this is riba al-fadl.
And if it is with a deferred payment, it becomes both riba al-fadl and riba al-nasi'ah, containing both types of riba. Likewise, similar cases, such as one dollar for two or three dollars with a deferred payment or immediately. If it is immediate and hand-to-hand, it is riba al-fadl. If it is with a deferred payment, it is both riba al-fadl and riba al-nasi'ah, where both matters coincide. These are the aspects of riba. Yes.
The presenter: May Allah reward you.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.