Wednesday, April 17, 2024
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Buying same currency but different note

Fatwaa ID: 1319

Question:
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?

Answer:
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
https://askthemufti.us/

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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