Fatwa: # 45565
Category: Business Matters
Country: African Country
Date: 28th June 2020

Title

Is Forex Trading permissible?

Question

Asalamaua Alaikum wa rahmatullahi wa barakatu. May I sincerely ask whether foreign exchange (Forex) trading is permissible or impermissible in Islam?

Since it is all about buying a specific currency when it has lost its value and selling it by the time it gains value due to the economy of that country doing so well for example with exports etc, then make profit therefrom.

Jazaka Allah.

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Respected Brother,

Shari’ah has placed certain restrictions on currency trading to avoid interest-based transactions. Exchanging different currencies is permissible even with excess on one side as long as one party takes possession of his currency at the time of the transaction. However, when trading with deferment from one party, the market value on the day of trading should be considered. Deferment from both parties will render the transaction impermissible.

In the case of online forex trading, then such a manner of trade is not permissible as physical possession and delivery of the currency is not found.

However, you may provide us with the details and manner in which you intend carrying out Forex trading. A further analysis can be made and we may provide you with a definite answer regarding the permissibility or impermissibility of your involvement in such a trade.[1]  [2]  [3]

 

And Allah Ta’āla Knows Best

Abdullah Noorgat

Student Darul Ifta

South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

 


[1]الفتاوى الهندية (3/ 224)

لَوْ بَاعَ الْفُلُوسَ بِالْفُلُوسِ ثُمَّ افْتَرَقَا قَبْلَ التَّقَابُضِ بَطَلَ الْبَيْعُ وَلَوْ قَبَضَ أَحَدُهُمَا وَلَمْ يَقْبِضْ الْآخَرُ أَوْ تَقَابَضَا ثُمَّ اُسْتُحِقَّ مَا فِي يَدِي أَحَدِهِمَا بَعْدَ الِافْتِرَاقِ فَالْعَقْدُ صَحِيحٌ عَلَى حَالِهِ كَذَا فِي الْحَاوِي

 

البحر الرائق شرح كنز الدقائق (6/ 143)

فِي أَحْكَامِ الْفُلُوسِ فِي الْمُحِيطِ لَوْ بَاعَ الْفُلُوسَ بِالْفُلُوسِ أَوْ بِالدَّرَاهِمِ أَوْ بِالدَّنَانِيرِ فَنَقَدَ أَحَدُهُمَا دُونَ الْآخَرِ جَازَ، وَإِنْ افْتَرَقَا لَا عَنْ قَبْضِ أَحَدِهِمَا جَازَ

 

 

[2] فتاوی دار العلوم زکریا (5/333)

پہلی صورت میں چونکہ ڈالر و غیرہ کے عوض روپے ملتے ہیں اور دو ملکوں کی کرنسی مختلف جنس کے حکم میں ہے اس لیے کمی بیشی کے ساتہ بیع کرنا جائز ہے نیز چونکہ یہ ثمن عرفی ہے ثمن حقیقی نہیں اس لیے  اس مجلس میں تقابض بہی ضروری نہیں، ہاں ایک جانب سے قبضہ ضروری ہے تاکہ بیع الکالی بالکالی سے بچ جاۓ

 

[3] Contemporary Fatawa (pg.141)

 

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