about islamic forex trading !!!

Indonesia
January 8, 2007 11:18pm CST
There is a general consensus among Islamic jurists on the view that currencies of different countries can be exchanged on a spot basis at a rate different from unity, since currencies of different countries are distinct entities with different values or intrinsic worth, and purchasing power. There also seems to be a general agreement among a majority of scholars on the view that currency exchange on a forward basis is not permissible, that is, when the rights and obligations of both parties relate to a future date. However, there is considerable difference of opinion among jurists when the rights of either one of the parties, which is same as obligation of the counterparty, is deferred to a future date.
1 response
@shigoto (69)
• Indonesia
9 Jan 07
Based on what I read about Forex on Islam's perception, Trading on currencies are permittable,as long as the money can be seen by the buyer and seller,or when the trade is on the spot basis,and the two type of currency has different value,different uses,even different shape and design,for example USD and GBP. So,if you are buying 1000 GBP with your 1950 USD, and the transaction takes place on the spot,and both of the currencies are traded directly by the buyer and the seller,I think it is okay to do currency exchange.