Question
Some Muftis say that foreign currency may be sold on credit since it is not in the category of gold or silver. The Mufti says that according to the view of Imaam Abu Hanifah (Rahmatullah alayh) and Imaam Abu Yusuf (Rahmatullah alayh), when the 'thamaniyat' (currency aspect) is cancelled, then the rules of Sarf (trading in gold and silver) will not apply, hence selling foreign currency which is not representative of gold and silver may be sold on credit. Is this right?
Answer
No, it is wrong. Foreign currency may not be sold on credit. The rules of Sarf will apply. The view of Imaam Muhammad (Rahmatullah alayh) applies to foreign currency sales, not the view of Shaikhain (Rahmatullah alayhima). Furthermore, the view of Shaikhain is based on the cancellation of thamaniyat by the trading partners (buyer and seller).
However, the thamaniyat of dollars, rands, pounds, etc. is not cancelled when trading with these currencies. The trading partners who trade with foreign currency do not cancel the currency factor. It will remain currency (thaman) whereas in the case of 'fuloos' during Imaam Abu Hanifa's era it was possible for the buyer and seller to cancel the thamaniyyat of their copper coins. This cannot be done by the trade partners with today's currencies. Only governments can abolish the thamaniyyat.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 26 No 02
- PDF page
- 2
Appears under Questions and Answers (approximate).