Question :

Some Indian laborers want to transfer certain sums of money to their country, so I carry out this task on their behalf by giving that money to someone who is departing to India so that he delivers them by hand. In return, I take a commission similar to that charged by the bank. Moreover, I would, sometimes, lend them whatever sums they want, exchange them into Rupees and transfer to their country. However, upon collecting my money, later on, the exchange rate of the Rupee against the Dinar varies; therefore, I may gain or lose. Is such a transaction valid from the view of Islamic Sharia?

The Answer :

All perfect praise be to Allah, The Lord of The Worlds; and may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.
It is permissible to charge a commission against transferring funds from one country to another; however, we advise you to adhere to the established rules and regulations in order not to break the law.
On the other hand, if the transaction involves money transfer and exchange, it is imperative that both parties collect their money in the same sitting. Moreover, if the money you paid them is a loan, it is mandatory that the currency is agreed upon in advance, Rupees or Riyals; therefore, the laborers must repay you the exact amount, or replace it with another currency based on the exchange rate on the day of repayment, not the day of borrowing. As a result, if you have lent them in Dinar, they either repay you the exact amount in Dinar, or Rupee according to the exchange rate on the day of repayment. And Allah knows best.