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Ameer's Q&A: Exchange and Conversion of Currency

currency
Question:
Assalamu Alaikum Wa Rahmatullah Wa Barakaatuhu,
I hope from Allah سبحانه وتعالى that you are in good health, wellness, and doing well, and I hope that the glad tidings of the Mustafa ﷺ have finally come. My question is: Is it allowed to exchange a currency with another without cashing in anything from it, and it transfers to another place? For example: I want to buy 1000 Dinars from the Exchanger having agreed on everything, and I have paid him as agreed on the spot and informed him to send the money to a specific location without cashing in the 1000 Dinars. Is this allowed or should the cashing in happen? May Allah bless you, aid you, keep you steadfast, and support you with victory.
From Mohammad Az-Zaru


Answer:
Wa Alaikum us Salaam Wa Rahmatullah Wa Barakatuhu
This transaction doesn’t stop at the exchange only, but it also includes an exchange transaction, since you are buying Dinars with another currency, so for example you give him 3000 Riyals for 1000 Dinars, and then he will transfer it to the location of your choice, that is first it has been exchanged and then transferred:
  • As for the exchange between different monies, then it should happen hand to hand, that is it should be a direct exchange, else it would be Haram:
Bukhari reported from Suleiman bin Abu Muslim, he said: I asked Abu Al-Minhal about the hand-in-hand exchange, so he said: “My business partner and I bought something hand-in-hand and also on credit”. Al-Baraa bin A’zib came and we asked him about this, so he said: “My business partner Zaid bin Arkoum and I did this, so we asked the Prophet of Allah ﷺ about this and he said: «مَا كَانَ يَدًا بِيَدٍ، فَخُذُوهُ وَمَا كَانَ نَسِيئَةً فَذَرُوهُ» “What was bought directly hand-in-hand, take it, but what was bought on credit, leave it.”
Muslim reported from Malik bin Aws bin Al-Hadathan that he said: I came saying: “Who will exchange Dirhams?” So, Talha bin Obeid Allah, while he was at Umar bin Al-Khattab (rA), said: “Show us your gold, then come to us. If our servant comes, we will give you your money.” Umar bin Al-Khattab (rA) said: “No, in Allah’s Name you will give him his money or return to him his gold, as the Prophet ﷺ said:
«الْوَرِقُ بِالذَّهَبِ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالْبُرُّ بِالْبُرِّ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالشَّعِيرُ بِالشَّعِيرِ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالتَّمْرُ بِالتَّمْرِ رِبًا، إِلَّا هَاءَ وَهَاءَ»
“Trading gold for money is Riba (usury), except for trading on the spot, and trading wheat for wheat is Riba, except or trading on the spot, and trading barley with barley is Riba, except for trading on the spot, and trading dates with dates is Riba, except for trading on the spot”.
Muslim reported from Ubada bin As-Samit, he said: the Prophet of Allah ﷺ said:
«الذَّهَبُ بِالذَّهَبِ، وَالْفِضَّةُ بِالْفِضَّةِ، وَالْبُرُّ بِالْبُرِّ، وَالشَّعِيرُ بِالشَّعِيرِ، وَالتَّمْرُ بِالتَّمْرِ، وَالْمِلْحُ بِالْمِلْحِ، مِثْلًا بِمِثْلٍ، سَوَاءً بِسَوَاءٍ، يَدًا بِيَدٍ، فَإِذَا اخْتَلَفَتْ هَذِهِ الْأَصْنَافُ، فَبِيعُوا كَيْفَ شِئْتُمْ، إِذَا كَانَ يَدًا بِيَدٍ»
“Gold is to be traded for gold, silver for silver, wheat or wheat, barley for barley, dates for dates, salt for salt, the like is traded for its like, same for the same, hand-in-hand, even if these items are different in types, then sell as you wish, as long as it is hand-in-hand.”
The meaning behind “hand-in-hand” is that the trading happens by hand, so this person gets paid in Riyals, and the second person will get paid in Dinars, all happening at the same time…
  • After cashing it in, you can transfer it to that location whether it was via this Exchanger or another.
  • A person might say: what’s the use of cashing in the money as long as this money will be transferred? The answer is that the reason behind this is the Ahadith of the Prophet ﷺ as they contain clear and confirmed evidence that have no sheer doubt nor ambiguities, as they have been mentioned in clear-cut statements showing definitely the necessity for cashing it in: “except for trading on the spot”, “hand-in-hand” and all these phrases are clear evidence for cashing it in, so no excuses or alternative interpretations are accepted. This is what I have understood from them, but Allah سبحانه وتعالى is All-Knowing and The Wise.
 Your brother
Ata Bin Khalil Abu Al-Rashtah
24 Rabii’ Ath-Thani 1437 AH
19/01/2016 CE
The link to the answer from the Ameer’s Facebook page:
The link to the answer on Google Plus:
The link to the answer on Twitter:
wer to Question
Exchange and Conversion of Currency
To Mohammad Az-Zaru
(Translated)
Question:
Assalamu Alaikum Wa Rahmatullah Wa Barakaatuhu,
I hope from Allah (swt) that you are in good health, wellness, and doing well, and I hope that the glad tidings of the Mustafa (saw) have finally come. My question is: Is it allowed to exchange a currency with another without cashing in anything from it, and it transfers to another place? For example: I want to buy 1000 Dinars from the Exchanger having agreed on everything, and I have paid him as agreed on the spot and informed him to send the money to a specific location without cashing in the 1000 Dinars. Is this allowed or should the cashing in happen? May Allah bless you, aid you, keep you steadfast, and support you with victory.
Answer:
Wa Alaikum us Salaam Wa Rahmatullah Wa Barakatuhu
This transaction doesn’t stop at the exchange only, but it also includes an exchange transaction, since you are buying Dinars with another currency, so for example you give him 3000 Riyals for 1000 Dinars, and then he will transfer it to the location of your choice, that is first it has been exchanged and then transferred:
-      As for the exchange between different monies, then it should happen hand to hand, that is it should be a direct exchange, else it would be Haram:
Bukhari reported from Suleiman bin Abu Muslim, he said: I asked Abu Al-Minhal about the hand-in-hand exchange, so he said: “My business partner and I bought something hand-in-hand and also on credit”. Al-Baraa bin A’zib came and we asked him about this, so he said: “My business partner Zaid bin Arkoum and I did this, so we asked the Prophet of Allah (saw) about this and he said: «مَا كَانَ يَدًا بِيَدٍ، فَخُذُوهُ وَمَا كَانَ نَسِيئَةً فَذَرُوهُ»“What was bought directly hand-in-hand, take it, but what was bought on credit, leave it.”
Muslim reported from Malik bin Aws bin Al-Hadathan that he said: I came saying: “Who will exchange Dirhams?” So, Talha bin Obeid Allah, while he was at Umar bin Al-Khattab (rA), said: “Show us your gold, then come to us. If our servant comes, we will give you your money.” Umar bin Al-Khattab (rA) said: “No, in Allah’s Name you will give him his money or return to him his gold, as the Prophet (saw) said: «الْوَرِقُ بِالذَّهَبِ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالْبُرُّ بِالْبُرِّ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالشَّعِيرُ بِالشَّعِيرِ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالتَّمْرُ بِالتَّمْرِ رِبًا، إِلَّا هَاءَ وَهَاءَ»“Trading gold for money is Riba (usury), except for trading on the spot, and trading wheat for wheat is Riba, except or trading on the spot, and trading barley with barley is Riba, except for trading on the spot, and trading dates with dates is Riba, except for trading on the spot”.
Muslim reported from Ubada bin As-Samit, he said: the Prophet of Allah (saw) said: «الذَّهَبُ بِالذَّهَبِ، وَالْفِضَّةُ بِالْفِضَّةِ، وَالْبُرُّ بِالْبُرِّ، وَالشَّعِيرُ بِالشَّعِيرِ، وَالتَّمْرُ بِالتَّمْرِ، وَالْمِلْحُ بِالْمِلْحِ، مِثْلًا بِمِثْلٍ، سَوَاءً بِسَوَاءٍ، يَدًا بِيَدٍ، فَإِذَا اخْتَلَفَتْ هَذِهِ الْأَصْنَافُ، فَبِيعُوا كَيْفَ شِئْتُمْ، إِذَا كَانَ يَدًا بِيَدٍ»   "Gold is to be traded for gold, silver for silver, wheat or wheat, barley for barley, dates for dates, salt for salt, the like is traded for its like, same for the same, hand-in-hand, even if these items are different in types, then sell as you wish, as long as it is hand-in-hand.” The meaning behind “hand-in-hand” is that the trading happens by hand, so this person gets paid in Riyals, and the second person will get paid in Dinars, all happening at the same time…
-      After cashing it in, you can transfer it to that location whether it was via this Exchanger or another.
-      A person might say: what’s the use of cashing in the money as long as this money will be transferred? The answer is that the reason behind this is the Ahadith of the Prophet (saw) as they contain clear and confirmed evidence that have no sheer doubt nor ambiguities, as they have been mentioned in clear-cut statements showing definitely the necessity for cashing it in: “except for trading on the spot”, “hand-in-hand” and all these phrases are clear evidence for cashing it in, so no excuses or alternative interpretations are accepted. This is what I have understood from them, but Allah (swt) is All-Knowing and The Wise.
Your brother
Ata Bin Khalil Abu Al-Rashtah

The link to the answer from the Ameer’s Facebook page.
The link to the answer on Google Plus.
The link to the answer on Twitter.
- See more at: http://www.hizb-ut-tahrir.info/en/index.php/qestions/jurisprudence-questions/9544.html#sthash.ljK14a3x.dpuf
Answer to Question
Exchange and Conversion of Currency
To Mohammad Az-Zaru
(Translated)
Question:
Assalamu Alaikum Wa Rahmatullah Wa Barakaatuhu,
I hope from Allah (swt) that you are in good health, wellness, and doing well, and I hope that the glad tidings of the Mustafa (saw) have finally come. My question is: Is it allowed to exchange a currency with another without cashing in anything from it, and it transfers to another place? For example: I want to buy 1000 Dinars from the Exchanger having agreed on everything, and I have paid him as agreed on the spot and informed him to send the money to a specific location without cashing in the 1000 Dinars. Is this allowed or should the cashing in happen? May Allah bless you, aid you, keep you steadfast, and support you with victory.
Answer:
Wa Alaikum us Salaam Wa Rahmatullah Wa Barakatuhu
This transaction doesn’t stop at the exchange only, but it also includes an exchange transaction, since you are buying Dinars with another currency, so for example you give him 3000 Riyals for 1000 Dinars, and then he will transfer it to the location of your choice, that is first it has been exchanged and then transferred:
-      As for the exchange between different monies, then it should happen hand to hand, that is it should be a direct exchange, else it would be Haram:
Bukhari reported from Suleiman bin Abu Muslim, he said: I asked Abu Al-Minhal about the hand-in-hand exchange, so he said: “My business partner and I bought something hand-in-hand and also on credit”. Al-Baraa bin A’zib came and we asked him about this, so he said: “My business partner Zaid bin Arkoum and I did this, so we asked the Prophet of Allah (saw) about this and he said: «مَا كَانَ يَدًا بِيَدٍ، فَخُذُوهُ وَمَا كَانَ نَسِيئَةً فَذَرُوهُ»“What was bought directly hand-in-hand, take it, but what was bought on credit, leave it.”
Muslim reported from Malik bin Aws bin Al-Hadathan that he said: I came saying: “Who will exchange Dirhams?” So, Talha bin Obeid Allah, while he was at Umar bin Al-Khattab (rA), said: “Show us your gold, then come to us. If our servant comes, we will give you your money.” Umar bin Al-Khattab (rA) said: “No, in Allah’s Name you will give him his money or return to him his gold, as the Prophet (saw) said: «الْوَرِقُ بِالذَّهَبِ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالْبُرُّ بِالْبُرِّ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالشَّعِيرُ بِالشَّعِيرِ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالتَّمْرُ بِالتَّمْرِ رِبًا، إِلَّا هَاءَ وَهَاءَ»“Trading gold for money is Riba (usury), except for trading on the spot, and trading wheat for wheat is Riba, except or trading on the spot, and trading barley with barley is Riba, except for trading on the spot, and trading dates with dates is Riba, except for trading on the spot”.
Muslim reported from Ubada bin As-Samit, he said: the Prophet of Allah (saw) said: «الذَّهَبُ بِالذَّهَبِ، وَالْفِضَّةُ بِالْفِضَّةِ، وَالْبُرُّ بِالْبُرِّ، وَالشَّعِيرُ بِالشَّعِيرِ، وَالتَّمْرُ بِالتَّمْرِ، وَالْمِلْحُ بِالْمِلْحِ، مِثْلًا بِمِثْلٍ، سَوَاءً بِسَوَاءٍ، يَدًا بِيَدٍ، فَإِذَا اخْتَلَفَتْ هَذِهِ الْأَصْنَافُ، فَبِيعُوا كَيْفَ شِئْتُمْ، إِذَا كَانَ يَدًا بِيَدٍ»   "Gold is to be traded for gold, silver for silver, wheat or wheat, barley for barley, dates for dates, salt for salt, the like is traded for its like, same for the same, hand-in-hand, even if these items are different in types, then sell as you wish, as long as it is hand-in-hand.” The meaning behind “hand-in-hand” is that the trading happens by hand, so this person gets paid in Riyals, and the second person will get paid in Dinars, all happening at the same time…
-      After cashing it in, you can transfer it to that location whether it was via this Exchanger or another.
-      A person might say: what’s the use of cashing in the money as long as this money will be transferred? The answer is that the reason behind this is the Ahadith of the Prophet (saw) as they contain clear and confirmed evidence that have no sheer doubt nor ambiguities, as they have been mentioned in clear-cut statements showing definitely the necessity for cashing it in: “except for trading on the spot”, “hand-in-hand” and all these phrases are clear evidence for cashing it in, so no excuses or alternative interpretations are accepted. This is what I have understood from them, but Allah (swt) is All-Knowing and The Wise.
Your brother
Ata Bin Khalil Abu Al-Rashtah

The link to the answer from the Ameer’s Facebook page.
The link to the answer on Google Plus.
The link to the answer on Twitter.
- See more at: http://www.hizb-ut-tahrir.info/en/index.php/qestions/jurisprudence-questions/9544.html#sthash.ljK14a3x.dpuf
Answer to Question
Exchange and Conversion of Currency
To Mohammad Az-Zaru
(Translated)
Question:
Assalamu Alaikum Wa Rahmatullah Wa Barakaatuhu,
I hope from Allah (swt) that you are in good health, wellness, and doing well, and I hope that the glad tidings of the Mustafa (saw) have finally come. My question is: Is it allowed to exchange a currency with another without cashing in anything from it, and it transfers to another place? For example: I want to buy 1000 Dinars from the Exchanger having agreed on everything, and I have paid him as agreed on the spot and informed him to send the money to a specific location without cashing in the 1000 Dinars. Is this allowed or should the cashing in happen? May Allah bless you, aid you, keep you steadfast, and support you with victory.
Answer:
Wa Alaikum us Salaam Wa Rahmatullah Wa Barakatuhu
This transaction doesn’t stop at the exchange only, but it also includes an exchange transaction, since you are buying Dinars with another currency, so for example you give him 3000 Riyals for 1000 Dinars, and then he will transfer it to the location of your choice, that is first it has been exchanged and then transferred:
-      As for the exchange between different monies, then it should happen hand to hand, that is it should be a direct exchange, else it would be Haram:
Bukhari reported from Suleiman bin Abu Muslim, he said: I asked Abu Al-Minhal about the hand-in-hand exchange, so he said: “My business partner and I bought something hand-in-hand and also on credit”. Al-Baraa bin A’zib came and we asked him about this, so he said: “My business partner Zaid bin Arkoum and I did this, so we asked the Prophet of Allah (saw) about this and he said: «مَا كَانَ يَدًا بِيَدٍ، فَخُذُوهُ وَمَا كَانَ نَسِيئَةً فَذَرُوهُ»“What was bought directly hand-in-hand, take it, but what was bought on credit, leave it.”
Muslim reported from Malik bin Aws bin Al-Hadathan that he said: I came saying: “Who will exchange Dirhams?” So, Talha bin Obeid Allah, while he was at Umar bin Al-Khattab (rA), said: “Show us your gold, then come to us. If our servant comes, we will give you your money.” Umar bin Al-Khattab (rA) said: “No, in Allah’s Name you will give him his money or return to him his gold, as the Prophet (saw) said: «الْوَرِقُ بِالذَّهَبِ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالْبُرُّ بِالْبُرِّ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالشَّعِيرُ بِالشَّعِيرِ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالتَّمْرُ بِالتَّمْرِ رِبًا، إِلَّا هَاءَ وَهَاءَ»“Trading gold for money is Riba (usury), except for trading on the spot, and trading wheat for wheat is Riba, except or trading on the spot, and trading barley with barley is Riba, except for trading on the spot, and trading dates with dates is Riba, except for trading on the spot”.
Muslim reported from Ubada bin As-Samit, he said: the Prophet of Allah (saw) said: «الذَّهَبُ بِالذَّهَبِ، وَالْفِضَّةُ بِالْفِضَّةِ، وَالْبُرُّ بِالْبُرِّ، وَالشَّعِيرُ بِالشَّعِيرِ، وَالتَّمْرُ بِالتَّمْرِ، وَالْمِلْحُ بِالْمِلْحِ، مِثْلًا بِمِثْلٍ، سَوَاءً بِسَوَاءٍ، يَدًا بِيَدٍ، فَإِذَا اخْتَلَفَتْ هَذِهِ الْأَصْنَافُ، فَبِيعُوا كَيْفَ شِئْتُمْ، إِذَا كَانَ يَدًا بِيَدٍ»   "Gold is to be traded for gold, silver for silver, wheat or wheat, barley for barley, dates for dates, salt for salt, the like is traded for its like, same for the same, hand-in-hand, even if these items are different in types, then sell as you wish, as long as it is hand-in-hand.” The meaning behind “hand-in-hand” is that the trading happens by hand, so this person gets paid in Riyals, and the second person will get paid in Dinars, all happening at the same time…
-      After cashing it in, you can transfer it to that location whether it was via this Exchanger or another.
-      A person might say: what’s the use of cashing in the money as long as this money will be transferred? The answer is that the reason behind this is the Ahadith of the Prophet (saw) as they contain clear and confirmed evidence that have no sheer doubt nor ambiguities, as they have been mentioned in clear-cut statements showing definitely the necessity for cashing it in: “except for trading on the spot”, “hand-in-hand” and all these phrases are clear evidence for cashing it in, so no excuses or alternative interpretations are accepted. This is what I have understood from them, but Allah (swt) is All-Knowing and The Wise.
Your brother
Ata Bin Khalil Abu Al-Rashtah

The link to the answer from the Ameer’s Facebook page.
The link to the answer on Google Plus.
The link to the answer on Twitter.
- See more at: http://www.hizb-ut-tahrir.info/en/index.php/qestions/jurisprudence-questions/9544.html#sthash.ljK14a3x.dpuf
Answer to Question
Exchange and Conversion of Currency
To Mohammad Az-Zaru
(Translated)
Question:
Assalamu Alaikum Wa Rahmatullah Wa Barakaatuhu,
I hope from Allah (swt) that you are in good health, wellness, and doing well, and I hope that the glad tidings of the Mustafa (saw) have finally come. My question is: Is it allowed to exchange a currency with another without cashing in anything from it, and it transfers to another place? For example: I want to buy 1000 Dinars from the Exchanger having agreed on everything, and I have paid him as agreed on the spot and informed him to send the money to a specific location without cashing in the 1000 Dinars. Is this allowed or should the cashing in happen? May Allah bless you, aid you, keep you steadfast, and support you with victory.
Answer:
Wa Alaikum us Salaam Wa Rahmatullah Wa Barakatuhu
This transaction doesn’t stop at the exchange only, but it also includes an exchange transaction, since you are buying Dinars with another currency, so for example you give him 3000 Riyals for 1000 Dinars, and then he will transfer it to the location of your choice, that is first it has been exchanged and then transferred:
-      As for the exchange between different monies, then it should happen hand to hand, that is it should be a direct exchange, else it would be Haram:
Bukhari reported from Suleiman bin Abu Muslim, he said: I asked Abu Al-Minhal about the hand-in-hand exchange, so he said: “My business partner and I bought something hand-in-hand and also on credit”. Al-Baraa bin A’zib came and we asked him about this, so he said: “My business partner Zaid bin Arkoum and I did this, so we asked the Prophet of Allah (saw) about this and he said: «مَا كَانَ يَدًا بِيَدٍ، فَخُذُوهُ وَمَا كَانَ نَسِيئَةً فَذَرُوهُ»“What was bought directly hand-in-hand, take it, but what was bought on credit, leave it.”
Muslim reported from Malik bin Aws bin Al-Hadathan that he said: I came saying: “Who will exchange Dirhams?” So, Talha bin Obeid Allah, while he was at Umar bin Al-Khattab (rA), said: “Show us your gold, then come to us. If our servant comes, we will give you your money.” Umar bin Al-Khattab (rA) said: “No, in Allah’s Name you will give him his money or return to him his gold, as the Prophet (saw) said: «الْوَرِقُ بِالذَّهَبِ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالْبُرُّ بِالْبُرِّ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالشَّعِيرُ بِالشَّعِيرِ رِبًا، إِلَّا هَاءَ وَهَاءَ، وَالتَّمْرُ بِالتَّمْرِ رِبًا، إِلَّا هَاءَ وَهَاءَ»“Trading gold for money is Riba (usury), except for trading on the spot, and trading wheat for wheat is Riba, except or trading on the spot, and trading barley with barley is Riba, except for trading on the spot, and trading dates with dates is Riba, except for trading on the spot”.
Muslim reported from Ubada bin As-Samit, he said: the Prophet of Allah (saw) said: «الذَّهَبُ بِالذَّهَبِ، وَالْفِضَّةُ بِالْفِضَّةِ، وَالْبُرُّ بِالْبُرِّ، وَالشَّعِيرُ بِالشَّعِيرِ، وَالتَّمْرُ بِالتَّمْرِ، وَالْمِلْحُ بِالْمِلْحِ، مِثْلًا بِمِثْلٍ، سَوَاءً بِسَوَاءٍ، يَدًا بِيَدٍ، فَإِذَا اخْتَلَفَتْ هَذِهِ الْأَصْنَافُ، فَبِيعُوا كَيْفَ شِئْتُمْ، إِذَا كَانَ يَدًا بِيَدٍ»   "Gold is to be traded for gold, silver for silver, wheat or wheat, barley for barley, dates for dates, salt for salt, the like is traded for its like, same for the same, hand-in-hand, even if these items are different in types, then sell as you wish, as long as it is hand-in-hand.” The meaning behind “hand-in-hand” is that the trading happens by hand, so this person gets paid in Riyals, and the second person will get paid in Dinars, all happening at the same time…
-      After cashing it in, you can transfer it to that location whether it was via this Exchanger or another.
-      A person might say: what’s the use of cashing in the money as long as this money will be transferred? The answer is that the reason behind this is the Ahadith of the Prophet (saw) as they contain clear and confirmed evidence that have no sheer doubt nor ambiguities, as they have been mentioned in clear-cut statements showing definitely the necessity for cashing it in: “except for trading on the spot”, “hand-in-hand” and all these phrases are clear evidence for cashing it in, so no excuses or alternative interpretations are accepted. This is what I have understood from them, but Allah (swt) is All-Knowing and The Wise.
Your brother
Ata Bin Khalil Abu Al-Rashtah

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