QUESTION:
As Salamu Alaikum,
Some scholars say that in an exchange of currency. The exchange should be simultaneous.
But how then is one supposed to transfer money abroad through remittance or hawala. Or even use services like western union to transfer money back home. Since the currency is different that which is being paid to that which the recipient will receive or at a larger scale if someone does business on an international level. How can they transfer money with an international bank transfer? Or is there some logistical leeway for this considering the purpose for the transaction is not necessarily to purchase a currency, rather it is for the purpose of transferring it elsewhere.
ANSWER:
Wa Alaikum As Salaam,
In money exchange or exchange of currency, the requirement of the Shariah is that it be simultaneous.
Transferring money through remittance or Hawala is not money exchange but it is simply transferring one’s money to another person. In this, there is no actual money exchange or exchange of currency
It is important that you understand that money exchange (exchange of currency) is actually a trade of money of different currencies known as Bai As Sarf or currency transactions. Since money is not literally a commodity, it is referred to as money exchange or the exchange of currencies, since in these transactions one does not literally buy money, he simply exchanges his currency (of money) for another currency (of money). It is for this reason it is referred to as money exchange and not money sales or the sale of money.
One of the conditions for the transaction of money exchange to be valid/permissible is that it must be simultaneous.
As for Hawala or transferring money abroad and other similar acts, this is not regarded as money exchange in Islam and hence, does not have the same conditions.
When you use Western Union to send money to your country, you are simply sending and transferring your money to another place. You are not buying money in another currency.
However, seeing that you are sending money from a country that uses a particular currency, you will be required to submit the amount you wish to send in that currency. When that amount is given to others in another country, then Western Union will give it in the currency that is used in that country. So, although it seems to be an exchange of currency, it is not technically called money exchange which is known to be a mode of money transaction in the Shariah which has stipulated conditions.
Therefore, in the case of remittance and Hawala, and in transferring money by sending it to your home/families and friends with others or through others, it is permissible for delayal to take place in reaching the monies to the appointed people. There is no prohibition in this, since it is not regarded as Bai As Sarf or money exchange in Islam. It is simply a matter of transferring money from one place to another whether you use a person or a service.
When one does business on an international level and one transfers money via an International bank transfer, then there is no requirement to have everything done simultaneously as one may do in money exchange, since in such transactions, goods/commodities are sold for money. In doing business on an international level, people purchase goods from companies and are given the allowance to make a down payment or pay afterwards. They can use an International bank transfer to transfer monies and pay for goods even though the payments may be received afterwards, by the receiving bank or a company. So, in both cases of transferring money through Western Union and also in doing international business by transferring money with an International bank transfer, there is no requirement in Islam for payment to the receiving person (or company) to be done simultaneously (at the same time when the monies are deposited to be transferred). In these cases, the monies can be paid and received afterwards with delay, and there is no prohibition in this.
These transactions are not Bai As Sarf (money exchange) transactions and are not subjected to the laws given for the exchange of currency, where the exchange of monies or currencies must be done at one time.
And Allah Knows best
Mufti Waseem Khan
4/5/2026