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The question

How is it possible to buy gold with Egyptian Pounds or silver with Saudi Riyals, knowing that the Egyptian Pound is backed by gold and the Saudi Riyal is backed by silver, which necessitates equivalence and immediate possession?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

Paper currency has become a price for things, and it has no intrinsic value or value derived from being backed by gold. Its value originated from governments compelling people to use and accept it. Paper currencies are considered different categories (ajnas) from gold and silver.

The International Islamic Fiqh Academy has decided that paper money: 1. Is considered currency in its own right, just as gold, silver, and other forms of currency are. 2. Comprises different categories (ajnas), varying with the issuing authorities; thus, each paper currency is an independent category. 3. Consequently, both types of Riba (interest/usury) apply to it, which entails: a) The impermissibility of selling some of it for some of it or for other monetary categories on credit (nasi'ah) under any circumstances. b) The impermissibility of selling the same category of it for itself with a differential (mutafadilan), whether on credit or hand-to-hand. c) The permissibility of selling some of it for some of it from a different category without restriction, provided it is hand-to-hand.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Ftawy
Original fatwa ID
95356
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy