Fatwa No : 81933
The ruling on the exchange of different currencies.

The ruling on the exchange of different currencies.

Assalamu Alaikum wa Rahmatullahi wa Barakatuh,
Respected Mufti Sahib! I would like to ask the following questions:
(1) We intend to start a currency exchange business. Please inform us whether it is haram (forbidden) or halal (permissible)?
(2) At present, we are engaged in the business of commercial/available goods, which is quite difficult. These items do not sell easily, but we have sold them gradually and earned a good profit for example, 50% or 70%. We also provide a one-year warranty on parts, etc., and offer additional services as well. Kindly guide us on how much profit is permissible in such trade. And if we happen to earn a 100% profit, is it halal or not? Allah Hafiz.

الجوابُ حامِدا ًو مُصلیِّا ً

If the exchange involves the currency of the same country, then two conditions are essential for its permissibility:
(1) The exchange must be cash on both sides and equal in amount, with neither increase nor decrease; otherwise, it will fall under riba (usury). For example, one hundred Pakistani rupees must only be exchanged for one hundred Pakistani rupees.
(2) Both parties must take possession of the exchanged amounts in the same sitting (majlis al-aqd).
However, if the exchange involves currencies of different countries, then disparity in value (increase or decrease) is permissible, but possession on at least one side during the transaction sitting is required. Furthermore, it is not permissible in Shariah to gain a 100% profit through deceit or false representation, as this constitutes ghabn fahish (gross deception), which must be avoided.
Although Shariah does not specify any fixed limit for profit, it must always be earned through honesty and fairness.

مأخَذُ الفَتوی

کمافی تکملۃ فتح الملھم: واما الحنفیۃ فالفلوس عندھم عددیۃ،فلیست من الاموال الربویۃ فاحکامھا من ھذہ الجھۃ علیٰ وجوہ عندھم والحکم فیھا مختلف(1): بیع الفلوس بمثلھا کالفلس الواحد بالفلس الواحد الآخر وھذا انما یجوز اذا تحقق القبض فی احد البدلین فی المجلس قبل ان یفترق المبائعان فان تفرقا ولم یقبض احد شیئا فسد العقد لان الفلوس لاتتعین فصارت دینا علی کلااحد،والافتراق عن دین بدین لایجوز۔۔۔ولکن قدمنا ھناك ان المختار عندنا قول من یجعلھا اثمانا اصطلاحیۃ،وحینئذ تجری علیھا احکام الفلوس النافقۃ سواء بسواء وقدمنا آنفا ان مبادلۃ الفلوس بجنسھا لایجوز بالتفاضل عند محمد وینبغی ان یفتی بھذا القول فی ھذا الزمان، سدا لباب الربا وعلیہ فلایجوز مبادلۃ الاوراق النقدیۃ بجنسھا متفاضلۃ،ویجوز اذا کانت مماثلۃ والمماثلۃ ھٰھنا ایضا تکون بالقیمۃ لابالعدد کما فی الفلوس فیجوز ان یباع ورق نقدی قیمتہ عشر ربیات بعشرۃ اوراق قیمۃ کل واحد منھا ربیۃ واحدۃ ولایجوز ان یباع الاول باحد عشر ورقاً من الثانیۃ واما العملۃ الاجنبیۃ من الاوراق فنھی جنس آخر،فیجوز مبادلتھا بالتفاضل،فیجوز بیع ثلاث ربیات باکستانیۃ بریال واحد سعودی اھ(1/587)۔