Is it permissible to transfer money from Saudi Arabia to Egypt using two different currencies (Riyal and Dollar)?
This transaction involves selling cash for cash, transferred to another country, and selling cash for cash of a different currency. The condition for this is that both parties must take possession of their respective monies in the contract session, and they may not separate before the possession takes place. Some scholars believe that transferring money in this way is forbidden due to the lack of actual possession. Other scholars, whose view is preponderant, believe that possession is achieved because the bank provides the customer with a transfer document, which restricts the customer's right to the transfer amount, and this document takes the place of possession. It is stated in the resolutions of the Islamic Fiqh Academy (113-114): "Among the forms of constructive possession considered valid شرعاً (religiously) and عرفاً (customarily) are: 1. The bank entry of an amount of money into the customer's account... 2. Receiving a check if it has a withdrawable balance in the currency it is written in, upon its fulfillment and retention by the bank." It is also stated in the fatwas of the Permanent Committee (13/448): "It is permissible to convert paper currency of one country into paper currency of another country, even if the two عوضان (considerations) differ in quantity... but on condition of mutual possession in the session, and the possession of a check or a transfer document is considered as possession in the session."
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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