Is it permissible to purchase European currency with dinars from a country other than the seller's country after paying the price in advance?
The exchange of different currencies is called currency exchange (sarf). A condition for its permissibility is immediate possession (taqabud) at the time of the transaction, based on the Prophet's (peace be upon him) saying: "Gold for gold, silver for silver, like for like, equal for equal, hand to hand. If these types differ, then sell as you wish, provided it is hand to hand." Monetary currencies take the place of gold and silver. Therefore, the exchange must be "hand to hand," meaning that possession must be taken before the contracting parties separate. Possession can be achieved through various forms, including: a check, a transfer slip, and a bank deposit. The Islamic Fiqh Council and the Permanent Committee for Scholarly Research and Ifta are of the view that receiving a check and recording it in the bank's ledgers is considered equivalent to taking possession.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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