Rulings on Buying and Selling Different Currencies
Author: Dr. Muhammad Ziya-ur-Rahman Azmi (رحمہ الله)
If the currencies are different, their exchange is permissible on the condition that it is done hand-to-hand in the same session.
For example, if Libyan currency is sold for U.S. dollars or Egyptian pounds, and the transaction is completed immediately in cash—such as a person buying dollars with Libyan currency and both parties exchanging them on the spot—then there is no harm.
However, if it is done on credit, or if both parties do not hand over the exchanged amounts in the same sitting, then it is not permissible. This falls under a type of riba-based transaction.
Therefore, if the currencies are different, it is necessary to exchange them on the spot in the session.
If the currencies are of the same type, then two conditions must be met:
① They must be equal in amount.
② The exchange must take place hand-to-hand in the same session.
This is based on the Prophet’s ﷺ saying:
"Gold for gold, silver for silver, wheat for wheat, dates for dates, barley for barley, salt for salt—equal for equal, like for like; but if these types differ, then sell as you wish, provided it is hand-to-hand."
[Sahih Muslim 1587/81]
The same ruling applies to currencies: if they are different, an increase is permissible provided the exchange is done in the session. If they are the same type, such as dollar for dollar or dinar for dinar, then the exchange must be equal and immediate.
[Ibn Baz: Majmu‘ al-Fatawa wa al-Maqalat: 19/171]
Author: Dr. Muhammad Ziya-ur-Rahman Azmi (رحمہ الله)
Currency Exchange
If the currencies are different, their exchange is permissible on the condition that it is done hand-to-hand in the same session.
For example, if Libyan currency is sold for U.S. dollars or Egyptian pounds, and the transaction is completed immediately in cash—such as a person buying dollars with Libyan currency and both parties exchanging them on the spot—then there is no harm.
However, if it is done on credit, or if both parties do not hand over the exchanged amounts in the same sitting, then it is not permissible. This falls under a type of riba-based transaction.
Therefore, if the currencies are different, it is necessary to exchange them on the spot in the session.
If the currencies are of the same type, then two conditions must be met:
① They must be equal in amount.
② The exchange must take place hand-to-hand in the same session.
This is based on the Prophet’s ﷺ saying:
"Gold for gold, silver for silver, wheat for wheat, dates for dates, barley for barley, salt for salt—equal for equal, like for like; but if these types differ, then sell as you wish, provided it is hand-to-hand."
[Sahih Muslim 1587/81]
The same ruling applies to currencies: if they are different, an increase is permissible provided the exchange is done in the session. If they are the same type, such as dollar for dollar or dinar for dinar, then the exchange must be equal and immediate.
[Ibn Baz: Majmu‘ al-Fatawa wa al-Maqalat: 19/171]
