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Forex Currency Trading
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Question: |
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Is Forex Currency Trading halal? I have attached a document
detailing the aspects of the business. |
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Answer: |
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I went thought the papers sent by you. I am of the opinion
that these transactions are not compliant with Shariah. The very condition that
you cannot take delivery of the purchased currency makes it impermissible.
Moreover, there are other elements according to my knowledge that makes this
trade unlawful in Shariah, such as, forward sales, short sales etc. This is in
addition to the fact that the currencies are originally a medium of exchange and
should only be exchanged for personal use in different countries. To make them a
tradable commodity only for earning a profit is also against the basic
philosophy of Islamic economics. I would therefore not advise you to indulge in
this trade. |
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