Is currency exchange just for the purpose of gaining profit acceptable according to the Shariah? For example (hypothetically) a person exchanges 100 Riyal to dollar, then the dollars to Indian rupees and INR back to Riyals and thus ends up having 110 Riyals, due to differences in the exchange prices. Is it halal to increase the money in this way? Isn't it virtual trade, not involving any actual material and thus haraam as per shariah?
If the trade conditions are met then there is no problem at all. I think we can agree that if he was to sell $1 for $2 then this will be regarded as riba and thus prohibited. But if he was to trade euros for dollars and this was done in one sitting then there is no problem. If after that transaction is complete and valid then he then trades what he now has for another currency then this will be valid as well. So there is actual trading as there is transfer of ownership at the conclusion of each transaction.< Back to Questions