Question: Assalamu alaykum
I get paid at work in a foreign currency and I always have to convert my salary to our local currency. I am trying to ensure I am not engaged in usury so I am confused on what rate I should use for the conversion. Shall I use the rate I was paid in or shall I use the current rate that the bank is willing to change the currency for as at that day?
Answer: Wa alaikum as-salam wa rahmatullahi wa barakatuhu
Exchanging the currencies of different countries does not entail riba, and it is generally permissible at any rate agreed upon by the two parties. However, in some countries there is a government-mandated exchange rate. If this is the case in your country, you would be obligated to exchange at that rate. This is because one must obey the laws of one’s country in all matters that are not contrary to Shariah. For details, please read the article below.
Wassalam,
[Shaykh] Umer Mian
Proudly brought to you by Seekers Hub, more Seekers Hub can be found at http://seekershub.org/ans-blog/2018/10/21/avoid-usury-when-exchanging-currencies/
Since You’re Here… we have a small favour to ask.
In these extraordinary times, millions rely on HOTD for daily uplifting & inspiring content. Established since 2009 and with your kind support we’ve seen readers elevate their Imaan & strive for better on a daily basis. We’re committed to keeping our content freely available and open for all readers. Every contribution, however big or small, makes a difference and help us spread knowledge to millions daily
HOTD is something special, it’s a place where people can come to be inspired, to renew their faith, to learn and share knowledge, to fall in love with our faith and also our Prophet (peace and blessings be upon him and his family).
All content on HOTD is free. We believe what we do in this life builds for the next one and we work tirelessly with the aim to please Allah and inspire the global Muslim community as
well as providing information and inspiration for anyone interested in Islam. We simply cannot do this without your support and your support helps us continue our services.
If there were ever a time to join us, it is now. You can support HOTD and help sustain our future. Support Hadith of the Day and make a one-off donation or give regularly from as little as £10 a month Jazak’Allah Khayr – whatever you donate will come back to benefit you Insha’Allah as whatever is spent in the way of Allah is an investment in the future and the next life. Thank you.
