Buying and Selling the Iraqi Dinar

Answered by 

Shaykh Muhammad Ashraf

Question:

Is it Halaal or Haraam? to buy & sell the new Iraqi Dinar to make a profit on the currency value over a period of time (whethere long/short) i.e. you buy the new dinar for 1000 and you sell when its value has strengthened to make a profit. The new iraqi dinar will be bought with a stable currency such as (Australian/US dollar) and then sold when dinar value has strengthened to make profit.

Answer:

You are allowed to purchase the Iraqi Dinaar and later sell it when its value has strengthened, provided the buying and selling take place in a cash transaction. It is not permissible to buy or sell any currency on credit.

(Al-Hidayah, Vol. 3, Page 105)

And Allah Ta’ala knows best

Ebrahim bin Zainul Abedeen Backus

Attested to as correct by:

Mufti Muhammad Ashraf

Darul Iftaa

Jameah Mahmoodiyah

Springs

10 August2005

04 Rajab 1426

This Q&A was indexed in 2012 from the website of Jameah Mahmoodiyah, South Africa. The original website no longer exists.
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