Is it permissible for a money transfer company to charge transfer fees, set an exchange rate lower than the market rate to make a profit, and pay in the destination country with a currency different from the sending currency? Does the receipt take the place of actual possession in cases where immediate delivery is not possible? What is the ruling on transferring an amount in one currency to be paid in another currency at the exchange rate of the deferred payment date?
Currency exchange is called sarf, and it requires immediate possession (taqabud) at the contracting session. Possession is achieved by receiving a certified check or a remittance slip. The company or bank is permitted to charge fees for the transfer. The company may exchange currency with the client at an agreed-upon rate, even if it is lower or higher than the market rate, provided there is no deception of the client. However, it is not permissible for the company to lend the client an amount in one currency and then agree with him that the repayment will be in another currency. Similarly, it is not permissible to sell one currency for another without immediate possession at the contracting session.
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- 18850
- Imported
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