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Promises And Commitments In International Exchange Market

What is the Shariah ruling with regard to the promises and commitments to enter into exchange operations for a specified price when delivery is delayed and no price or advance is paid out?

If a promise is made to enter into exchange operations at a specified price, a delayed delivery and no advance payment, the exchange must be completed for each of the two currencies, hand to hand, such that each party takes possession of the currency it is owed at the time specified for delivery.

Such a delayed exchange does not involve an element of riba since the international market regularly announces definitive prices for currencies around the world and markets operate on the basis of rules that are honored by all the parties who trade there.

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