In the Name of Allāh,

the Entirely Merciful, the Especially Merciful

Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.

Resolution No. 102 (5/11)

Currency Trading (Foreign Exchange Market)

The Council of the International Islamic Fiqh Academy of the Organization of the Islamic Conference, holding its 11th session in Manama, Kingdom of Bahrain, on 25–30 Rajab 1419h (14–19 November 1998),

Having examined the research papers submitted to the Academy concerning

Currency Trading (Foreign Exchange Market),

Having listened to the discussions on the subject,

Resolves

First: Confirming the Academy resolution no. 21 (9/3) concerning banknotes and the changing value of currency, resolution no. 63 (1/7) concerning the stock exchange, paragraph (3) on trading in commodities, currencies and indexes of organized markets, and no. (2) concerning currency exchange, and resolution no. 53 (4/6) concerning Qabḍ (taking possession), paragraph (2-i-c).

Second: It is not permissible in Shariah to sell currencies by deferred sale, nor to set a date for the exchange of their price, as has been proven by the Quran, Sunnah and Ijmāʿ.

Third: Ribā (usury), currency trading, and currency exchange that do not abide by the rulings of Shariah are among the most important causes of the economic crises and financial fluctuations that have hit some countries.

Recommendation

It is incumbent upon Muslim governments to exercise control over financial markets and compel them to regulate their activities, such as in currencies and other transactions in accordance with the provisions of Shariah, as these prin- ciples are the safety valve against economic disasters.

Indeed, Allāh is the Giver of success.