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Currency exchange

Q 1: What is the ruling on money exchanged from one currency to another? For example, my salary is paid in Saudi riyals which I exchange for Sudanese riyals, knowing that the Saudi riyal equals three Sudanese riyals. Is that considered a form of prohibited Riba (usury)?


A: Currency exchange is permissible even if the exchange rate varies in value provided that currencies are of different types like the case in the abovementioned question. However, the exchange process has to be made hand to hand. Receipt of a check or a bill holds the same ruling applied to hand-to-hand transactions. (Part No. 13; Page No. 449) May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.


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