Question
If two different currencies are traded with one party trading on credit and the other on cash, what is the ruling of exchanging currencies?
What rate should be considered?
Answer
When different currencies are being exchanged on credit, it is necessary that at least one of the transacting parties hands over their currency in the Majlis (the gathering) wherein the transaction was concluded whilst the other may hand over his currency at a later stage. This is the Shari’ee requirement when currencies are exchanged on credit.
Secondly, it is also necessary that if the parties agree to do the transaction as per the current rate, then when determining the rate of conversion, the current market rate at the time of the transaction must be taken into consideration (and not the rate on the later date when the currency is collected). In short, the current rate on the day of the transaction will be taken into consideration.
Checked and Approved By:
Mufti Muhammed Saeed Motara Saheb D.B.
References
اسلام اور جديد معاشي مسائل 2/83