Currency Transaction
Issue No. 2432- It is permissible to have foreign currency exchange transactions, i.e. one can exchange English pounds for American dollars, or French franc for German mark, etc., and there is no harm if it is less or more. However, if a person lends some money to another person whether it is in dollars or other currencies, he can ask him for the repayment of the same, and if he asks for more than that amount, it will be usury and haraam. And if someone lends a person some foreign currency, for example, some 100.00 German marks, and if he is forced to receive the money, for example, in Canadian dollars, then it should be calculated at the common and usual rate of the market. However, if the creditor himself consents to receiving less than that, there would be no problem.
