MONEY EXCHANGE
QUESTION:
As Salaamu Alaikum,
If someone gave me $100 US and someone else offered me $750tt for it can I sell it at that price?
ANSWER:
Wa Alaikum As Salaam,
If you are doing money exchange, then it will be permissible for you to sell $100 US for $750. TT when that is the market rate of the exchange of the US currency to TT dollars. This sale must however be done immediately in the same sitting. This means that the exchange between the currencies must take place as soon as the contract is done, and possession must be taken immediately by both parties of the contract. Delay in payment on any side and delay in taking possession are not permissible.
The above is based on the allowance given in Islam to do money exchange in normal cases. When it comes to doing the same on Forex Trading (Online), the Muslim scholars have not given any allowance for this. The reason is that the Islamic Laws pertaining to the validity for money exchange are not fulfilled through Forex Trading. Therefore, you have to be mindful of this and refrain from doing transaction on Forex Trading.
While answering a question on the issue of Forex Trading, the great scholar, Mufti Taqi Usmani wrote, ‘I am of the opinion that these transactions are not compliant with Shariah. The very condition that you cannot take delivery of the purchased currency makes it impermissible. Moreover, there are other elements according to my knowledge that makes this trade (Forex Trading) unlawful in Shariah, such as, forward sale, short sale etc. This is in addition to the fact that the currencies are originally a medium of exchange and should only be exchanged for personal use in different countries. To make them a tradable commodity only for earning a profit is, also against the basic philosophy of Islamic economics’. (source Al Balagh.net)