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Foreign Currency Exchange (Forex)

Answered as per Maliki Fiqh by BinBayyah.net

Kindly advise us about the Shar`i ruling on trading on currencies online via the Forex system. I am well trained in it and can use it to make money, but I fear being involved in something haram. Please answer me, may Allah confer Mercy and guidance upon you.

Trading on different foreign currencies, such as exchanging dollars for riyals, is permissible, provided that it is interest-free. The Prophet (peace and blessings be upon him) said, “But the types (of transacted goods) are different, then trade as you like as long as it is a hand-to-hand exchange”.

And Allah knows best.

This answer was collected from BinBayyah.net, which contains of feature articles and fatawa by world renowned ‘Alim, Sheikh Abdullah Bin Bayyah, from Mauritania.

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