Search Islamic Finance Answers

1,000+ scholar-approved answers and growing...

Browse one of the world's largest database of Islamic finance Q&As available online.

Search Results

International Rates Of Exchange
If the client wishes to deposit foreign currency in his account, it is permissible for the bank to purchase the cash in that foreign currency and sell it in the form of a transfer deposited into the client’s account. ...
 
Buying Gold From Bank And Selling It To Clients
Since the sale of gold by the bank to clients takes place after its purchase and the deposit of its price in the seller's account, the sale is perfectly lawful. It is a sale ...
 
Ruling Regarding Exchange of Similar Currency
Yes, in order to avoid the risk of loss due to fluctuating exchange rates, it is permissible for two contracting parties to deal in the same currency. If at the time of the contract's maturity the party that needs to make the payment is unable to do so in the established c...
 
International Trade In Gold
Gold is purchased and the full price is paid and it is stored in the treasury of the correspondent bank in the Islamic bank's name. The bank then sells the gold to the one willing to pay the price acceptable to it, such that the transaction is hand to hand, the gold is delivered to the purchaser and the payment is received from him at the same time and place. The bank may at times enact a promise to sell the gold it possesses at a later time for a higher price than its own purchase price based on the understanding that the exchang...
 
Replenishing Overdrawn Accounts
If accounts in a certain currency become overdrawn while there are positive balances in other currency accounts, the client may request the bank to replenish the overdr...
 
Deferring Receipt Of Currency
In a transaction of currency it is unlawful to defer the receipt of the currency exchanged regardless of whether there is a condition to th...
 
Permissibility Of Trading Foreign Exchange At Spot
The scholars permit the settlement of spot transactions to take place 2 business days after the actual transaction provided that the buyer does not sell t...
 
Forward Trading For Clients
It is not lawful for banks to be involved directly or indirectly...
 
Buying Back Notes Based On Payment In Currency Other Than The One Note Was Originally Issued In
The issuer's buying back the note and disregarding the maturity date is the same as his agreeing to exchange the currency of the note for another currency in which it is permissible for one of the counter values to be in excess of the other. For a lawful mutual exchange there must not be a maturity date, the currency of...
 
Delayed Delivery Of Gold Or Silver
It is not lawful to buy and sell gold, silver or currenc...
 
  Previous  1   2   3   4   5   6  Next 


Disclaimer: Although care has been taken in preparing the information contained in this Q&A database, Ethica Institute of Islamic Finance cannot guarantee the accuracy thereof. Anyone using the information does so at their own risk and shall be deemed to indemnify Ethica Institute of Islamic Finance from any and all injury or damage arising from such use. One should double check with a qualified scholar to see whether the Q&A applies to one's particular situation.

 

Ask an Islamic Finance Question

Each question is reviewed by an Islamic finance expert and approved by a scholar.

Ask Now »

SEARCH ISLAMIC FINANCE Q&As

Browse one of the world's largest database of Islamic finance Q&As available online.

View details »

What’s New at Ethica

Press releases, live events, book recommendations, discount offers, and more

View details »