The Religious Ruling on Buying and Selling Dollars $

Forms of Money Exchange:

1. Exchange of two banknotes of the same currency, such as toman for toman;
   The religious authorities (maraji‘) say that such exchange has no religious legitimacy, and taking any extra amount is considered usury (riba) and is forbidden. However, if the buying and selling is done with a reasonable purpose, such as buying and selling new banknotes, it is permissible.

2. Exchange of two banknotes of different currencies (currency trading), such as dollar for toman;
   This is permissible as a form of buying and selling, even if done on credit and with some extra amount, unless it violates relevant laws.
   However, some jurists do not permit credit-based currency trading, and some say that such a transaction is only free of problems if the extra amount is not considered interest for the credit period. Therefore, if this is done with prior collusion that amounts to usury, it is forbidden.

Fatwas from Religious Authorities on Buying and Selling Currency, Coins, and Dollars:

• Ayatollah Khamenei:
  If there is no legal prohibition and the transaction is rational, not exploitative, and done with fairness, it is permissible.

• Ayatollah Makarem Shirazi:
  If done on a large scale and causes widespread harm, it is not permissible.

• Ayatollah Fazel Lankarani:
  If it harms the country’s economy, it is not ethically permissible.

• Ayatollah Wahid Khorasani:
  If it causes significant rational harm to the economy, the profit from such a transaction is forbidden.

• Ayatollah Safi Golpaygani:
  No problem with it.

• Ayatollah Nouri Hamedani:
  Buying and selling is permissible, but considering the current economic conditions, such transactions are non-Shariah compliant.

• Ayatollah Javadi Amoli:
  If it does not violate the law, it is permissible.

• Ayatollah Sobhani:
  If it harms the economy, it is not permissible.

Selected Questions and Answers from Religious Inquiries:

• Q1601: If gold bullion is sold at the current price in cash, is it permissible to sell it one month later at a higher price with the consent of both parties? Is the profit from this sale halal?
  A: Pricing in a sale contract, whether cash or credit, depends on mutual agreement. Therefore, the mentioned transaction and its profit are permissible. However, trading gold for gold on credit or with an extra amount is not permissible.

• Q1602: What is the ruling on goldsmithing? And what conditions apply to gold trading?
  A: Making and selling gold is permissible. But when trading gold for gold, it must be cash, equal amounts, and delivery must occur at the time of the transaction.

• Q1603: What is the ruling on selling banknotes on credit for more than their value?
  A: If the transaction is serious and has a rational purpose, such as differences in the banknotes’ condition (old vs. new) or special marks or rates, it is permissible. But if it is a sham transaction to avoid usury and gain profit, it is forbidden.

• Q1604: Some people sell metallic coins used for public phone calls at prices higher than their face value (e.g., 35 tomans coins for 50 tomans in cash). What is the ruling?
  A: Buying and selling such coins above their face value for uses like phone calls is permissible.

• Q1605: If someone sells old money at the price of new money without knowing its lower value, and the buyer resells at the new price, must the defrauded party be informed? Are these transactions valid?
  A: Buying old money at an agreed price is permissible, even if it’s lower than new money. After the sale, if the money has market value (even if less), the transaction is valid, even if there was some mistake. The seller is not obliged to inform the buyer. The property acquired is considered owned by the seller, unless the buyer cancels the deal.

• Q1606: What about trading certain banknotes that are special, like green 1,000 toman notes with Imam Khomeini’s image sold for more than their face value?
  A: If the transaction is serious and rational, it is permissible. But if it is a sham sale to avoid usury, it is forbidden.

• Q1607: What is the ruling on currency exchange business and trading rare currencies?
  A: In itself, it is not problematic.

• Q1608: What is the ruling on buying government bonds? Is buying and selling them permissible?
  A: If the intention is to lend money to the government through bond issuance, it is permissible to buy. When the bondholder sells the bonds to get money, selling at the purchase price or less is permissible.