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Buying dollars from the black market

Fatwaa ID: 587

Assalamu alaikum a friend of mine is going for umrah and he wants to buy his dollars from the black market and not the banks is this permissible

In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

At the outset, we wish to advise that it is necessary to ensure that our transactions and dealings are Shari’ah compliant at all times, not only when it is related to umrah. In reality, the entire life of a believer is worship, including his day to day transactions. Honesty is also essential in the life of a Muslim.
Nevertheless, personal exchanges of currencies are permissible. It is not necessary to exchange it officially through a bank. When exchanging foreign currencies at spot, i.e., both parties are providing cash, then the parties may mutually agree on an exchange rate. They are not obligated to follow the market rate. If one party exchanges on credit, then the fair market rate will have to be adopted. Notwithstanding the above, one should abide by the fair laws of his country.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

07/23/1444 AH – 02/14/2023 CE | AML1-7060

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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