Wednesday, April 17, 2024
No menu items!

Buying same currency but different note

Fatwaa ID: 1319

Assalamualaikum dear Mufti Saab.
Near my home there is money exchange shop (same country currency) , they will take 20% extra. Example if I need five Rs.20 new notes bundle, I need to pay them 20% extra i.e Rs100+20=120 and so on…

Is this type of money exchange permissible?

It is permitted to buy currency from them giving 20% extra each time?

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

We understand from the details of your query that the exchange takes place between the same currency, e.g. bigger notes for smaller notes. When exchanging between the same currency, it is necessary to maintain equality on both sides. Both sides must exchange the same amount. Rs100 for Rs100 only. If one side gives extra, then that will be riba/interest. That is haraam. The enquired situation is not permissible.

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

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


Darul Iftaa New York answers questions on issues pertaining to Shari’ah. These questions and answers are placed for public view on for educational purposes. The rulings given here are based on the questions posed and should be read in conjunction with the questions. Many answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation. 

Darul Iftaa New York bears no responsibility with regard to its answers being used out of their intended contexts, nor with regard to any loss or damage that may be caused by acting on its answers or not doing so.

References and links to other websites should not be taken as an endorsement of all contents of those websites. 

Answers may not be used as evidence in any court of law without prior written consent of Darul Iftaa New York.