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 August 2005
04 Rajab 1426