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We want to start a Money Changer business. Is that ok?

Assalamo Alikum, Jinab Mufti sab , i want to ask the following 1-We want to start the Money Changer business , so please let us is this haram Or Halal. 2-We are doing a commercial item business which is so hard and the product could not sell easily so we sold that items very slow turn over ,and we get Good profit like 50, or 70 Percent.and we offer one year Guarantee for parts etc, we also provide other services, so kindly let us how much earning or profit is allow to get , and if we get 100% profit so is it Halal or not Allah Hafiz Please let us

الجواب حامدا و مصلیا

In the name of Allah, the Most Beneficent and the Most Merciful
Two conditions are to be met for the validity of exchanging currencies of same country.
1- Currencies from both parties should be identically equal and not to be more or less, lest it would include in Riba (Interest). Example: In exchange of 100 Pakistan Rupees, exactly 100 Rupees would be taken.
2- Physical possession of currencies from at least one party from the both, (either by the buyer or the seller) at the place of transaction.
As for exchange in currencies of different countries, although it is permissible to have variation, it is necessary that one party from both have the physical possession at the place of transaction. Whereas attaining 100% profit form the customer by lying or deceiving him is, due to being Ghabn e Fahish (a notorious fraud), not permissible in Shari’a and is necessary to refrain from it, although in profit itself, there is no fixed limit in Shari’a.

Allah knows best.

This Q&A was indexed from the official english fatwa portal of Jamia Binoria. It is an Islamic educational institute in Karachi, Pakistan.

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