Q. There are many Hajj and Umrah operators who adjust the rates of their packages based on currency fluctuations before full payment is made. Is this correct?
A. In principle, if a seller and purchaser conclude a sale with a valid offer and acceptance, the price agreed upon between them will be due in the currency in which the sale was concluded. Thereafter, it will not be permissible to adjust the price based on currency fluctuations.
Alternatively, if the seller or purchaser wish to conclude the sale only upon receiving or making full payment, then they may enter into a promise of sale or purchase agreement. Essentially, the seller or purchaser promises to conclude the sale only upon receiving or making full payment. Based on such an agreement, the currency rate on the day the sale is concluded will be considered. This will avoid any dispute, which will arise due to currency fluctuations between the seller and purchaser.
Note: The easy solution in such a situation is for the seller to fix the price of sale in either Riyaals or Dollars. The purchaser can then pay the price in the Riyaal or Dollar currency or its equivalent in Rands at the time of payment.
Allah Ta’ala Knows Best
Mufti Ismaeel Bassa