{"id":8003,"date":"2015-03-21T19:21:35","date_gmt":"2015-03-21T19:21:35","guid":{"rendered":"http:\/\/daruliftabirmingham.co.uk\/?p=8003"},"modified":"2015-03-21T19:21:35","modified_gmt":"2015-03-21T19:21:35","slug":"trading-in-currencies","status":"publish","type":"post","link":"https:\/\/daruliftabirmingham.co.uk\/home\/trading-in-currencies\/","title":{"rendered":"Trading in currencies"},"content":{"rendered":"

\n\tFatwa ID: 01759<\/strong><\/span><\/span><\/span>\n<\/p>\n

\n\tAnswered by <\/strong>Mufti Abdullah al-Ma’mun<\/span><\/span><\/span>\n<\/p>\n

\n\tQuestion:<\/span><\/strong><\/span><\/span>\n<\/p>\n

\n\tAssalam o Alaikum Respected Mufti Sahib, We are students residing at Torino, Italy. I have a little question regarding a trade between euro and PKR.  Let us suppose that person X wants to send euros to Pakistan and person Y needs euros from Pakistan. In this case usually what we (students) do is that person Y's father (or any other relative) transfers the equal amount of PKR to person X's relative's provided bank account. And when this transaction is confirmed, person X hands over the equal amount of euros to person Y. In this case both parties save the transaction charges. Usually the exchange rate is set according to the rate given at www.forex.pk or www.xe.com. Our question is if this trade is against Islamic rulings or is it OK? If there is some problem in it, then please guide us what can be an alternate solution for this kind of problem according to Islamic rulings.<\/span><\/span><\/span>\n<\/p>\n

\r\n Answer:<\/strong><\/pre>\n
\n\t\"Bismillah\"<\/a><\/span><\/span>\n<\/p>\n
\n\tIt is permissible to trade in currencies of different countries regardless of whether both the payments are of same face value or different face value, for example to exchange one euro for two GBP. This is due to the fact that both the currencies are considered to be of a different type or class. Hence excess on either one side is permissible and will not be considered as Riba (interest). However one must adhere to the following conditions:<\/span><\/span><\/span>\n<\/p>\n