In the name of Allah, the Most Merciful, the Bestower of Mercy.

The Book of Currency Exchange

The Prohibition of Usury in Currency Exchange

Usury in currency exchange, in all sales, and in debts owed is strictly forbidden by the Quran, the Sunnah, and the consensus of the Muslim community.

As for the Quran, Allah Most High says:

“Allah has permitted trade and forbidden usury.” [al-Baqarah: 275]

He also says:

“O you who believe, do not consume usury, doubled and multiplied, and fear Allah so that you may prosper.” [Āl ʿImrān: 130]

His words, “and fear Allah” [al-Baqarah: 231], convey a warning of punishment. When a prohibition is accompanied by such a warning, it is understood to indicate that the act is forbidden.

Allah Most High also says:

“Because of wrongdoing by the Jews, We forbade them good things that had been lawful to them, and because they hindered many from the way of Allah.” [al-Nisāʾ: 160]

“And their taking of usury although they had been forbidden it.” [al-Nisāʾ: 161]

The prohibition meant here is one that renders the act unlawful, since it is conjoined with conduct expressly declared unlawful. However, citing this verse as evidence for the prohibition of usury is valid only according to the position that the laws of earlier prophets which Allah Most High has related to us are binding upon us, unless something in our own law abrogates their application to us. This was the position adopted by Mālik, may Allah have mercy on him, for he cited as evidence in