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Resolutions of Iftaa' Board

Resolution No.(106): “Ruling on Foreign Exchange Offices“

Date Added : 02-11-2015

 

Resolution No.(106) by the Board of Iftaa`, Research and Islamic Studies:  

“ Ruling on Foreign Exchange Offices “

Date: 26/4/1472 AH, 24/5/2006 AD

 

 

Question: What is the ruling on foreign exchange offices that deal in foreign exchange speculation, American Stock Exchange (AMEX), gold, silver and petrol.

The way such offices operate can be clarified as follows: The client makes a deposit e.g.(5000) dollars and the office offers him credit facilities up to (50.000), but when the loss reaches (5000), the client loses his money and the office closes his account and the opposite is true in case of profit?

Answer:

The Board is of the view that such transaction is forbidden in Islamic Law {Sharia} because the money which the office lends to the client is conditioned by trading in foreign exchange with none other than it. In this case, it is a tied loan: no credit facilities to the client unless he adheres to dealing with the office alone. Moreover, the office`s profit is assured while the client`s isn`t, and this is tantamount to gambling.

This is in addition to the fact that this transaction is conducted without mutual reception in the place where the transaction was concluded. Also, the office sells and buys that which isn`t in its possession and this has been disapproved and forbidden by the Prophet (PBUH). And Allah Knows Best.

 

 

Chairman of the Iftaa` Board

Chief Justice/ Dr. Ahmad Hilayel

Dr. Abdusalam Al-Abbadi                                      Dr. Yousef Ghaidahn

Dr. Abdolmajeed As-Salaheen                              Sheikh Sai`ed Hijjawi

Dr. Wasif Al-Bakri                                         Sheikh Abdulkareem Khasawneh

Sheikh Na`iem Mujjahid

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Summarized Fatawaa

A person bought a device through a usurious bank, and receives income from it every month after paying the bank for the price. Now the person regrets it, what should he do now?

This person has fallen into what is forbidden due to dealing with usury. He must repent sincerely, and whoever repents, Allah Will Accept their repentance. As for the device, there is no need to sell it. And Allah Knows Best

An Imam stood to offer a fifth Rak`ah in a four-Rak`ah prayer, and he was reminded to sit by those behind him, but he wouldn`t listen. What is the ruling on those who followed his lead knowingly and intentionally?

If the Imam stood to offer a fifth Rak`ah, those praying behind him shouldn`t have approved of that, and the prayer of those who did is considered null and void.

What is the ruling of Sharia on Zina and what is the punishment for the unmarried man who commits this grave sin?

Praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
 
The punishment for Zina (Adultery and extramarital relations) is the same for men and women: 100 lashes for the unmarried to be witnessed by a group of the believers. Definitely, this person has incurred the wrath of Allah; however, he must make repentance immediately, refrain from this grave sin, and seek Allah`s forgiveness. And Allah The Almighty Knows Best.

What is the Islamic ruling regarding a person finding buried treasure, whether gold or artifacts, and what is their share of it?

If the buried treasure is Islamic, it is considered Luqta (lost property), and the finder must announce it to locate its owner. If all efforts to find the owner fail, the finder may take ownership of it. If the treasure is non-Islamic and consists of gold or silver, zakat must be paid on it, which is one-fifth of its value. And Allah Knows Best.

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