Ruling on Transferring Money Between Currencies

Authored by: Fatwas of the Saudi Fatwa Committee

It is permissible to exchange the paper currency of one country for the paper currency of another, even if the amounts are different, due to the difference in their nature and type. However, this transaction must meet the following condition:

1. Immediate Exchange:
   • The currencies must be exchanged hand-to-hand during the transaction (i.e., in the same session).
   • The exchange of checks or a receipt of money transfer at the time of the transaction is considered equivalent to physically handing over the currencies.

This ruling ensures the transaction complies with the principles of fairness and prevents any form of deferred liability that could lead to riba (usury).

[Reference: Al-Lajnah Ad-Daimah, Fatwa No. 4721]