Contemporary Primary Sources :: Fatwās - Contemporary :: 16 Muḥarram 1423 / 28 March 2002
National Shari'a Board - Indonesian Council of Ulama Fatwa No. 28 of 2002 on Sale and Purchase of Currency (Al-Sharf)
Dewan Syari'ah Nasional MUI, Posted by Daniel Peterson, 04 March 2016
This fatwa states that the sale and purchase of currency, in principle, is permissible, provided the following conditions are met:
- no speculation is involved;
- there is a transactional need, or a need to protect one's finances;
- if a transaction is made with regards to the same currency, the value thereof must be the same and in cash (at-taqabudh); and
- if a transaction is made using another currency, the current exchange rate must be applied and in cash.
The fatwa permits spot transactions, but prohibits forward, swap, and option transactions.