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Selling dollars for riyals in installments and over varying periods of time

Q 2: An exchange broker sells US dollars to one of his clients outside the Kingdom, in return for Saudi Riyals, provided that the client pays Saudi Riyals to him in separate installments at different periods of time, given that this agreement (Part No. 13; Page No. 435) is made through telex. Please advise, may Allah reward you, whether these transactions are valid and in conformity with the Islamic Shari`ah or not.


A: This transaction is impermissible, because it is a form of Riba Al-Nasi'ah (usury of delay, conditional excess for delay of payment), as they agree on the payment of Saudi Riyals in installments at different periods of time. Riba Al-Nasi'ah is Haram (prohibited) according to the texts and the Ijma` (consensus of scholars).May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.

< 4983 Repaying a debt in a...
< 4981 Money exchange

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Exchanging the local currency for a foreign one

Payment of the price
Saving dollars fearing other currencies might be affected by the riyal's decreasing value

Payment of the price
Leaving each other before delivering the exchanged amount in full

Payment of the price
Buying and selling currencies

Payment of the price
Deferred currency trade

Payment of the price

Buying coin riyals for paper riyals with increase

Payment of the price

Money exchange

Payment of the price

Currency trade

Payment of the price