Islamic Ruling on Buying and Selling Currency
Author: Dr. Muhammad Ziya-ur-Rahman Azmi (رحمہ الله)
Question:
Is it permissible for a person to buy a currency, store it, and then sell it when its value increases?
Answer:
Any item that a person purchases and stores to sell later—then sells it when the price increases—is permissible as long as it does not cause harm to Muslims.
For example, if someone buys Australian or Egyptian pounds, Iraqi dinars, Jordanian dinars, or Saudi riyals, and stores them until their value rises, then sells them in a transaction that fulfills the conditions of immediate exchange (taqabud) in the contract session, there is no prohibition in this.
The same principle applies to storing other goods; if it is not food or if it is food but storing it does not cause harm to Muslims, then there is no prohibition in it.
[Ibn Baz: Majmu‘ al-Fatawa wa al-Maqalat: 19/173]
Author: Dr. Muhammad Ziya-ur-Rahman Azmi (رحمہ الله)
Buying and Storing Currency for Trade Purposes
Question:
Is it permissible for a person to buy a currency, store it, and then sell it when its value increases?
Answer:
Any item that a person purchases and stores to sell later—then sells it when the price increases—is permissible as long as it does not cause harm to Muslims.
For example, if someone buys Australian or Egyptian pounds, Iraqi dinars, Jordanian dinars, or Saudi riyals, and stores them until their value rises, then sells them in a transaction that fulfills the conditions of immediate exchange (taqabud) in the contract session, there is no prohibition in this.
The same principle applies to storing other goods; if it is not food or if it is food but storing it does not cause harm to Muslims, then there is no prohibition in it.
[Ibn Baz: Majmu‘ al-Fatawa wa al-Maqalat: 19/173]
