Fatwa No : 85389
Exchanging Currency on Credit at a Value Higher Than the Market Rate

Exchanging Currency on Credit at a Value Higher Than the Market Rate

Our company imports shoes from China. For payments to Chinese suppliers, we need Chinese currency (RMB), which we usually obtain through Hawala. Practically, the situation is as follows: When we pay the Hawala dealer cash (PKR) immediately, he provides us RMB at the market rate. But when we pay the amount later (i.e., on credit/deferred payment), such as after a few days or on a specified future date, he gives us RMB at a higher rate on that same day (meaning he charges a higher exchange rate in return for the delayed payment). Kindly provide clear guidance in light of Hanafi Fiqh and the Islamic texts (Qur’an and Hadith) on the following matters:
In the second scenario, does increasing the rate due to delayed payment fall under Riba (usury)? In currency exchange (Sarf), is it necessary that both sides take possession/payment “hand-to-hand” (spot settlement)? What is the ruling if one side is delayed? If the exchange rate is fixed at the time of the deal but payment in PKR is made later, what is the Shari‘ah ruling on this? If this method is impermissible, what Shariah-compliant alternatives (e.g., any permissible agreement or documented method) can be adopted so that business needs are fulfilled while remaining protected from Riba?

الجوابُ حامِدا ًو مُصلیِّا ً

According to the preponderant opinion, although the currency of any country is considered a customary medium of exchange in Shari‘ah and the rules of sarf (currency exchange) do not apply when exchanging different currencies, nevertheless, when buying and selling the currencies of different countries, it is necessary that one of the two counter-values be taken into possession at the time of the contract. Along with this, it is also necessary that the price be determined according to the market rate, so that the transaction does not become a means of usury.
Therefore, in the case mentioned by the questioner — when doing a deferred payment transaction — it is necessary that the RMB be taken into possession in the meeting of the contract, and that its price be determined according to the market rate at that time, so that one remains protected from falling into usurious dealings.

مأخَذُ الفَتوی

کما فی البحر الرائق: وقيد بالذهب والفضة لأنه لو باع فضة بفلوس أو ذهب بفلوس فإنه يشترط قبض أحد البدلين قبل الافتراق لا قبضهما كذا في الذخيرة وقدمناه عند قوله في باب الربا وصح بيع الفلس بالفلسين الخ ( کتاب الصرف، ج 6 ص 211، ط: دار الکتاب الاسلامی )۔
و فی الشامیۃ: [تنبيه] سئل الحانوتي عن بيع الذهب بالفلوس نسيئة. فأجاب: بأنه يجوز إذا قبض أحد البدلين لما في البزازية لو اشترى مائة فلس بدرهم يكفي التقابض من أحد الجانبين الخ ( مطلب فی استقراض الدراھم، ج 5، ص 180، ط: سعید )۔
و فی الفتاوی التتارخانیۃ: إن الأوراق النقدیۃ ثمن عرفي لیست ثمنًا حقیقیًا والربا یجري في الثمن الخلقي الذاتي إذا في الأوراق النقدیۃ في مختلف الدولۃ ینفی القدر والجنس، أما الجنس فظاہر الاختلاف الدولۃ، وأما القدر؛ لأنہا لیست من جنس الآثمان الخلقیۃ؛ بل عرفیۃ، فیجوز التفاضل والنسیۃ إلا أن القبض علی أحد البدلین ضروري؛ لئلا یقع في بیع الکالي بالکالي.( ج8 ص348 ط: ادارۃ القرآن کراتشی)۔