Question
What is the ruling on trading in different currencies through Forex?
Answer
I say, and with God's success: Usually, these transactions do not observe the Sharia conditions, so they are only permissible if the Sharia conditions are confirmed. In our time, trading in currencies through the foreign exchange market "Forex" has become widespread, and this market exchanges daily what amounts to (3.8) trillion dollars. Our Sheikh Al-Othmani said in the jurisprudence of sales (2: 727- 728): "It is not permissible to deal through the Forex market according to Sharia. However, the real need for currency exchange for travel or international trade can be fulfilled through ordinary buying and selling from currency exchangers, provided that the dealer adheres to the Sharia conditions. Among the Sharia prohibitions in this regard: It is a condition for exchanging paper currencies that there be immediate possession in the meeting, and this condition is absent in most operations of this market. Often, a person sells what he does not own, and delivery and acceptance do not occur in many market operations; rather, sellers and buyers settle their transactions based on price differences. What a person buys through this market are non-specific currencies; because specification in currencies is only achieved through possession, which is absent in most transactions."