Chapter on Currency Exchange and Its Forms

Hammad narrated from al-Halabi, from Abu Abdullah عليه السلام, who said: "Silver for silver must be equal, and gold for gold must be equal, there should be neither an increase nor a delay. The one who gives extra and the one who demands extra will be in the Fire."

Aban narrated from Ishaq ibn Ammar, who said: I asked Abu Ibrahim (Imam Musa ibn Jafar Al-Kadhim عليه السلام) about a man who is owed dinars by another man, but he accepts dirhams instead. Then the price changes. Imam عليه السلام said: "It is based on the value at which he accepted them on that day. However, if he had accepted dinars and not dirhams, then his dinars remain owed to him, and he may take them in their original amount whenever he wishes."

Ibn Mahbub narrated from Hanan ibn Sadir, who said: I said to Abu Abdullah عليه السلام: "A man comes to me with dirhams, and I buy them from him with dinars. Then I give him a pouch containing more dinars than the value of his dirhams. I say to him: 'From these dinars, such and such amount is the price of your dirhams.' He takes the pouch from me, then returns it and says: 'Keep it with you for me.'" Imam عليه السلام said: "If the pouch contains enough to cover the value of his dirhams, then there is no harm in it."

Muhammad ibn Muslim narrated from Abu Ja'far Imam Muhammad ibn Ali Al-Baqir عليه السلام that a man from Sijistan came to him and said: "We have dirhams called al-Shamiyyah that are valued two daniqs more than regular dirhams." Imam عليه السلام said: "There is no harm in it; it is permissible."

Ibn Muskan narrated from al-Halabi, who said: I asked Abu Abdullah عليه السلام about two moneychangers who bought silver with dinars. One of them said to his companion, "Pay on my behalf," even though he was capable of paying if he wished. So the companion paid for him. Then later, he decided to buy his companion's share with a profit. I asked: "Is this permissible?" Imam عليه السلام said: "There is no harm in it."

It is narrated from Umar ibn Yazid, who said: I asked Abu Abdullah عليه السلام about exchanging dirhams for dirhams, where one of them contains lead, but they are equal in weight. Imam عليه السلام said: "Repeat the question." So I repeated it to him. Then Imam عليه السلام said: "Repeat it again." I repeated it again, and Imam عليه السلام said: "I see no harm in it."

Safwan ibn Yahya narrated from Abd al-Rahman ibn al-Hajjaj, who said: I asked Imam عليه السلام about currency exchange, and I said to Imam عليه السلام: "Sometimes during travel, the caravan may hurry, and we are unable to find the Damascene and Basran currencies. However, only the Damascene and Basran currencies are accepted in Nishapur. Imam عليه السلام asked: 'What is the caravan?' I said: 'It refers to a group of people who travel together and prepare for departure. If they hurry, they may not find the required currencies, so we sell them the lower-quality coins, exchanging 1,050 of these for 1,000 Damascene coins.' Imam عليه السلام said: 'There is no good in this. Why don't you add gold to it to account for the excess amount?'" I said to Imam عليه السلام: "Can I buy 1,000 and a dinar with 2,000 dirhams?" Imam عليه السلام said: "There is no harm in it. My father عليه السلام was bolder than us towards the people of Medina. He used to do this, and they would say it is merely a tactic. They would claim that if a man brought a dinar, he would not receive 1,000 dirhams, and if he brought 1,000 dirhams, he would not receive a dinar." Then Imam عليه السلام used to say: 'What an excellent thing it is to flee from the unlawful to the lawful.'"

Safwan narrated from Ishaq ibn Ammar, who said: I asked Abu Ibrahim (Imam Musa ibn Jafar Al-Kadhim عليه السلام) about a man who owes me money and repays me partially with dinars and partially with dirhams. When he comes to settle the remaining amount, the price of the dinars has changed. I asked: "Which price should I calculate, the price on the day he gave me the dinars or the price on the day we settle the account?" Imam عليه السلام said: "The price on the day he gave you the dinars, because you withheld their benefit from him."

Abdullah ibn Sinan asked Abu Abdullah عليه السلام about buying silver that contains mercury and lead with silver coins, knowing that when it is melted, it decreases by two or three dirhams for every ten. Imam عليه السلام said: "It is not permissible, except with gold."

Ishaq ibn Ammar narrated: I said to Abu Abdullah عليه السلام: "A man has some clear silver dirhams with me. He meets me and says, 'Don't I have such and such amount of clear dirhams with you?' I reply, 'Yes.' Then he says, 'Convert them into dinars at this rate and record them for me as dinars.' What do you think about this?" Imam عليه السلام said: "If you had calculated the exchange rate for him on that day, then there is no harm in it." I said: "I did not weigh them or make the exchange in person; it was only a verbal agreement between us." Imam عليه السلام said: "Aren't the dirhams and dinars both with you?" I said: "Yes." Imam عليه السلام said: "Then there is no harm in it."