Question
We import goods from China. Our suppliers give us three months to pay. The import value is $100,000 on 1 July 2015 When we received the goods in July, we took out foreward cover to cost goods. Exchange rate on 1 July was R12.50. Foreward cover rate for 30 September was R13,00. We therefore, paid R1,3 million on September 30, 2015. Is this allowed in the Shariah?
Answer
This is a haraam riba transaction. The 'foreward' cover is haraam insurance. The purchase price is fixed in dollars. Therefore, irrespective of the rand price of the dollar three months later, you are obliged to pay the creditor $100,000 which was the purchase price of the goods. It is immaterial whether the dollar cost was R10 a couple of months ago, and R15 three months later on due date. The $100,000 remains fixed.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 23 No 07
- PDF page
- 12
Appears under Questions and Answers (approximate).