Search Islamic Finance Answers

1,000+ scholar-approved answers and growing...

Deferring Receipt Of Currency

In the event that the client imports goods on credit terms that require the payment to be made after 180 days from the date the goods are shipped, is it permissible for the importer to purchase the currency required for payment to the foreign exporter from the bank while the bank retains this amount until the date the payment falls due?

Is it lawful for the bank to use the money and offer its client a price for that currency which is better than the going rate?

In a transaction of currency it is unlawful to defer the receipt of the currency exchanged regardless of whether there is a condition to that effect. It will however be lawful after a spot exchange to deposit the currency with the bank until the time of payment to the exporter.

7 Day Free Islamic Finance Course

Please enter your first name and email address to start receiving your CIFE™ lessons instantly!

We value your privacy. We will never rent, sell, or spam email addresses.

ASK AN ISLAMIC FINANCE QUESTION

Each question is reviewed by an Islamic finance expert and approved by a scholar.

Ask Now »

SEARCH ISLAMIC FINANCE Q&As

Browse one of the world's largest database of Islamic finance Q&As available online.

View details »

What’s New at Ethica

Press releases, live events, book recommendations, discount offers, and more

View details »