Is it pemissibale to deal in currencies on the foreign exchange markets.Whereby you buy and sell rands,dollars.etc.

It is permissible to buy and sell foreign currencies.

Dealing (purchasing and selling) in foreign currency is termed as Bay-us-Sarf. The Fuqahaa (jurists) have ruled that Tamaasul (equality) is not necessary in the buying and selling of foreign exchange. Hence, one dollar may be sold more than its equivalent value in rands. However, Ittihaad-e-Majlis (one sitting) is necessary in such a transaction. Therefore, the exchange of the dollar and rand must take place in the same sitting. If the foreign exchange is done in different sittings as is the case in forex companies, then the contemporary Fuqahaa have ruled that the spot trading is sufficient to fulfil the condition of Ittihaad-e-Majlis.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai