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QUESTION: Assalam-u-Alaikum!
I am doing Online E-currency Money Exchange Business and Brokery. Online E-currency exchange including these online accounts or payment processor: Liberty Reserve, Payza & Paypal etc.
Liberty Reserve is an online e-currency account or payment processor where we can send and receive money only but cannot deposit money directly to our Liberty Reserve Account & cannot cashout directly from Liberty Reserve Account to our bank account or credit or debit card instead we can contact any online international exchanger for cashout money recommended by Liberty Reserve or a local exchanger living in our country. Its mean, in both cases, cashout and deposit money, we have to contact any exchanger whether it is international exchanger or local exchanger of our country or any individual, and both international and national exchanger will take some fees in order to cashout or deposit your money to your Bank Account, Card or Western Union etc as per request. This is Liberty Reserve Terms of Service. Now, this is what I do:
For example: Dollar ($) rate in Pakistan is 100RS. Someone want to deposit $100 in his liberty reserve account or want to purchase $100 of liberty reserve, he contact me to buy and I have a local exchanger of liberty reserve which sell me 1 Dollar($) per 103RS ($ rate is 100RS but he selling in 103RS by making 3RS his profit, by considering all of his fees and taxes as he deposit by some exchanger to his liberty reserve account). Now, I purchase $100 in 103 RS rate and sell to another party $100 in 106RS rate, by making 3RS profit per Dollar($). Now, tell me is this type of profit permissible for me? Both parties seller and buyer know the current rates of today of Dollar($) and buyer agree to buy as he knows everything.
2) And in same way, when anyone want to cashout, he contact me and I have local exchanger which buy $ at 97RS and the seller party agree even on 95RS rate. So, working as a broker, am I allowed to make profit in it and continue my business?
Waiting for your hardly reply...

ANSWER: Walaikum As Salaam!

Getting this kind of doubts itself throws light that the profit margins seems to be very high.

And as an educated person, I go to the banks/exchangers that legally transacts which exchange
rates of buying/selling is not very high.

But in the case of so many uneducated people who go abroad to work and earn hard earned money
are paying high differentials resulting in eroding in their savings & also encouraging illegal
route of transferring the money which is strictly prohibited in Islam.

So, you decide on what you should do as I have given my explanation on this.

In your place I will guide the uneducated who comes to transfer their hard-earned monies (working abroad) to use banks/exchangers where rates are lesser than the bank/exchangers
rates you are working.

Otherwise I will apprise them with the comparative rates of other legal banks/exchangers and
if they accepts willingly (not out of ignorance or helplessness) then I will transact.

May the Almighty Allah have mercy on us to forgive our sins and guide us all to the true path
of Islam as per the Koran for rest of our life.

---------- FOLLOW-UP ----------

QUESTION: I am just talking about my own country people. I helping them only, I am not verified exchange and I also asked from liberty reserve and perfect money (both are online e-currency account) and both allowed exchange business, if I am doing correctly. So, I asked this question to other Scholar of Deoband Darululoom, and he said, it is permissible for me to buy and sell $ Dollar by making profit. Now, e-currency account allowed exchange and Scholar also allowed in light of Shariah Principles. So, I have started this business, and moreover, I talked to the liberty reserve support center, that I want to become Online Verified Exchange, so they said, you can one of them but not now, you have to wait 2-3 Months until you continue your service. So, now, I am doing this....this is simple explanation, if you doubt or think anything wrong, then answer here...I have no doubt now...

Well, if you don't have any doubt, then why do after others opinion. Your conscience matters most than others opinion as you are an educated person to
know if the buying & selling of Forex at the usual bank rates shouldn't be a problem.
But, as you progress in this line then you will also start on line currency trading, intraday and in future options which in my opinion is not allowed. So be
very sure what you want to do and how you want to do.
And why don't you read Koran in the language you best understand to follow it rather depending on others opinion and Deoband's opinions, if you read the
Koran in good faith then you will be definitely guided in these matters within your conscience.

May the Almighty Allah have mercy on us to forgive our sins and guide us all to the true path of Islam as per the Koran for rest of our life.


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Azam Mohammaed


I try to clarify doubts logically with Koran's guidance


Mashallah 18 years since I got married to my wife who is a Protestant Christian by faith

ITC Limited ABD-ILTD Division


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