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Exchanging the currencies of different countries and making a profit

Answered as per Hanafi Fiqh by Jamia Binoria

Currency Exchange businesses are common all over the world. Is exchanging the currencies of different countries and making a profit off of it permissible or not?

الجواب حامدا و مصلیا

It is permissible, as per Shari’ah, to exchange the currencies of different countries and earn a profit, under the condition that one of the two currencies that are being exchanged are received (i.e. taken possession of) at the time the contract has been made. If possession doesn’t occur from one party, then this transaction will not be permissible according to the Shari’ah.
And 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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