Spot currency Trading
| Fatwa #878 | Category: Business & Trade | Country: Zambia | Date: 14th July 2023 |
| Fatwa #878 | Date: 14th July 2023 |
| Category: Business & Trade | |
| Country: Zambia | |
Question
Asw ww
As we all know that the Zambian kwacha to the usd either at times rises and comes down..
so what I wanted to find out is that let’s say I deposit k2,000 in the kwacha account and rate was k18.00 on 1st July.. and then on 10th July the dollar rate decreases to 17.30 which means dollar will be more so then I transfer to dollar account.. and then on 20th July dollar increases to k19.00 which means more kwacha will be made.. so is that allowed according to Islam as you deposited k2,000 and end up with a little more as you kept transferring to dollar and vice versa..
as in it won’t be regarded as interest right..?
jazakallah Khair
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Spot trading is permissible in Islam.
The above forex transaction is permissible as it does not contravene the laws of Shariah
You may refer to the following link for a detailed answer on trading of currencies.
And Allah Ta’āla Knows Best
Mufti Muhammad I.V Patel
Concurred by
Mufti Bilal Pandor
Darul Iftaa Mahmudiyyah
Lusaka, Zambia