Should The Standard Or Black Market Exchange Rate Be Used When Paying Zakat Abroad?

Fatwa ID: 09263

 

 

Answered by Mufti Nuski Cassim

 

Question:

 

A person owes $1000 in zakat. He wants to pay his zakat in Malawi. There is a bank rate where $1000 is lets say 5000 kwachas and there is a black rate where $1000 is worth 10,000 kwachas.

 

Now he already has kwachas in Malawi.

 

Does he pay 5000 kwachas or 10,000 kwachas

 

 

In the name of Allah, the Most Gracious, the Most Merciful

 

Answer:

 

Although in principle there is nothing wrong with discharging one’s zakat in another country, it should only be done if the recipient(s) are more needy than those in one’s country or area, as those within one’s vicinity have more of a right to the zakat than those outside it.[1]

 

If a person owes $1000 in zakat and he wants to pay his zakat in Malawi, he should go with the bank rate where $1000 is 5000 kwachas and not with a black rate where $1000 is worth 10,000 kwachas.

 

This will be the case where the black rate is illegal, as zakah is an obligatory charity meant to purify one’s wealth, and it is counterintuitive to attempt to purify one’s wealth by opting to convert the money illegally. 

 

However, if the black rate conversion is not illegal, then one should convert the $1000 using this rate as it will be more beneficial to the zakat recipient(s).

 

 

Only Allah ﷻ knows best.

Written by Mufti Nuski Cassim

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

 

 

References:

 

[1]

ما زال جبریل یوصیني بالجار حتى ظننت أنه سيورّثه

[رياض الصالحين، متفق عليه، رقم الحديث: ٣٠٣]

 

ما آمن بي من بات َشْبعانا وجاره جائع إلى جنبه وھو یعلم به

[المعجم الكبير للطبراني، رقم الحديث: ٧٥١]

 

لا یؤمن أحدكم حتّى يحب لأخيه أو قال لجاره ما يحب لنفسه

[صحيح مسلم، رقم الحديث: ٤٥]

 

 

 

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