Taking interest on riyals

Q 2: What is the ruling on gaining profit from the value of the dollar on the condition that delivery be delayed? For example, someone buys a dollar at 3 riyals and 37 halalah and then sells it for an extra profit of 38 halalah provided that the delivery is delayed.

A: Dollars, riyals, sterling and other currencies are banknotes which hold the same ruling applied to gold and silver. Thus, it is prohibited to exchange banknotes for other banknotes of the same type whether with excess in the counter value or with a delay in delivery. However, it is permissible (Part No. 13; Page No. 309) to exchange a certain type of banknote for other different types with excess in the counter value provided that this takes place in a hand-to-hand transaction.Accordingly, it is permissible to exchange dollars for riyals on the spot, no matter whether the amount is little or much. But it is prohibited to delay delivery in similar transactions, no matter whether the amount is little or much as this falls under the prohibited type of Riba (usury) known as Riba Al-Nasi'ah (usury of delay, conditional excess for delay of payment). May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.