Shar‘i Ruling on Earning Commission in the Business of New and Old Currency Notes❖ Question:
If a person deals in new and old currency notes and instead of profiting through price variation, he adopts a commission-based model, is this method permissible in Islamic law?
❖ Answer by:
Shaykh ʿAbd al-Wakīl Nāṣir (حفظه الله)
Shaykh Fahd Anṣārī (حفظه الله)
Generally, people argue that effort is involved in this trade, such as obtaining the notes, delivering them, and conducting the transactions. However, such justifications are not valid in Sharīʿah.
The reason is:
This trade involves the same currency, and it is not permissible to increase or decrease the value of a currency when exchanging it for the same kind.
❖ Additional Clarification:
If someone claims, “I do not change the price, I only charge a commission,”
then this too is merely a legal trick (ḥīlah), and in reality, it does not differ from usury (ribā) and unlawful profit.
❖ Conclusion:
Charging commission in the business of exchanging new and old currency notes—when both are of the same currency and face value—is not permissible in Islam, regardless of the effort involved.
وَالله أعلم بالصواب
