Question #13-10: Riba and money exchange

Question:

Assalam O Alaikum Sheikh,I attended your lecture last week on 3/31/12.

I understand that transaction in currency (like gold) has to be in the same kind of currency or if being exchanged then in one meeting. You cannot leave your currency (for example $ dollars) with exchanger and pick up exchanged currency (any other currency) afterwards. It has to be right away in the same meeting. or take your currency with you and come back again to get it exchanged. I am confused. As I send money overseas to my family through bank, it takes days to get there. The bank tells me upfront what rate of exchange I will get, but it takes them days to actually deliver the money to my family account.

My question is, is the condition of exchange to be done right away in one meeting, to avoid failing in interest, applicable in this case? As I do not have control over bank's processing time. Sometimes they take even more time than what they actually tell me. I would appreciate your guidance in this matter.

Answer:

In the name of Allah, The Most Wise.

Walikum salam brother,

If the bank tells you upfront the rate of exchange you will receive , the transaction is halal even if it takes days for the receiver to receive the money. This is because the transaction/agreement is done in the same meeting. This true even if it takes the bank couple days for processing and the funds reach your home couple days later. There is nothing wrong with that.

Allah knows best.

Shk. Mostafa

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