Question:
A person buys the old currency of Saudi Riyals with a lesser price, then he sells it for more by a large amount than the first price in new currency?
Answer:
To whomever that is made easy for him, there is no legislative prevention in the issue.
(وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ۚ)
“Whereas Allah has permitted trading and forbidden Riba (usury).” [Al-Baqarah, 275]
That he bought in a currency for a lesser price for example, then he sells that same currency in a higher price; there is no legislative prevention.
Question:
So what is the ruling of investment in exchange rates, that he buys the Saudi currency whilst it’s price is low, then waits for it to increase then sells it for a higher price?
Answer:
The monopolizing commodities which is prohibited in the Hadith, whereby the Prophet ﷺ said:
{ لَا يَحْتَكِرُ إِلَّا خَاطِئٌ }
“None withholds goods till the price rises but a sinner.” [Reported by Muslim].
Is in the commodity which is rare in the market, or the people become harmed by it’s withholding, and the commodity which is available in the market in abundance and there is no harm on the people in withholding it, then this is not considered monopolizing commodities. So if he takes an amount of money and withholds it with him until it’s price increases and he exchanges it ~ in order to profit in it ~ there is no legislative prohibition in that.
In this case, sometimes they gain profit and sometimes they lose profit. In the likes of these situations; there occurs rise and decline.
But in this situation it is not monopolizing commodities from the angle which is prohibited. Rather the things are available, and the commodity is available, and the currencies are available, so there is no harm in withholding it in the likes of this situation.
Answered by: Shaykh, the Allamah, the Trustworthy Advisor, Abu Abdirrahman Yahya bin Ali Al-Hajuri – may Allah preserve him
Source: https://t.me/Bashuaib/5743
Translated by: Abū ‘Abdillāh ‘Omar bin Yahya Al-‘Akawi