Sheikhs in Somalia declare Forex haram!

[CaliTedesse]

Sheikhs from Somalia are one of the most ignorant ones wallahi and very arrogant. I'm always cautious around Somali sheikhs and never go to them in need of Islamic advice.

 

[Tukraq]

Governments do not dictate how valuable gold is - that is the entire reason behind why it is so valuable during times of war when there is no government

Gold has been deemed intrinsically valuable across civilizations for millennia, well before any formal governments or currencies were established

Gold isn’t intrinsically valuable, it is instrumentally valuable like money as a modicum of exchange, on its own it’s near worthless

 

[Tukraq]

So exchanging my dollars for shillings at the suuqa is haram now? These shaykhs have lost their minds

Exactly they don’t know what there taking about

 

[astorecalledkmart]

Gold isn’t intrinsically valuable, it is instrumentally valuable like money as a modicum of exchange, on its own it’s near worthless

Gold is aesthetically pleasing, extremely unreactive for a metal, easily malleable, resistant to corrosion by acids, and can be easily alloyed with other metals - it's uses extend beyond industry and go into art, jewelry, and medicine. People established that gold was valuable in it's own right thousands of years ago

 

[HalimaJ]

These Sheikhs have lost it. That is why I prefer to get knowledge from reputable sources.

If you truly believe it is, then getting your currency exchanged is technically haraam then when you decide to travel.

What do these Sheikhs do when they go abroad? Do they try to go to the shops and buy things with gold or Somali shillings? I think not.

 

[Tukraq]

Gold is aesthetically pleasing, extremely unreactive for a metal, easily malleable, resistant to corrosion by acids, and can be easily alloyed with other metals - it's uses extend beyond industry and go into art, jewelry, and medicine. People established that gold was valuable in it's own right thousands of years ago

Yes valuable for exchange outside that valueless, the timing doesn’t martter, same thing with paper money, if I dumped you off in an uninhabited part of Alaska with gold bars and you would never meet another person(exchange it), gold would be worthless(at least with fiat it can help you start a fire), like I said it has instrumental value(for trade), but no intrinsic value

 

[TekNiKo]

Fiat means ''by decree'' in Latin, basically government currencies like the USD or EUR.

Gold is the total opposite of fiat, it was established by humanity organically as a thing to store value in.

I do agree with you that gold is manipulated and a very bad investment. It always under performs the S&P 500 long term no matter what (there's data going back to the 1800s).

Our local economist @Apollo schooling these youngings.

 

[Abdurahman_somali]

Don't this Sheikhs know, that they perform FOREX everyday when they exchange Shilling for Dollar ?

 

[TekNiKo]

These Sheikhs have lost it. That is why I prefer to get knowledge from reputable sources.

If you truly believe it is, then getting your currency exchanged is technically haraam then when you decide to travel.

What do these Sheikhs do when they go abroad? Do they try to go to the shops and buy things with gold or Somali shillings? I think not.

I knew you would be against them, the whole world uses credit card does that mean we should too? Forex is not simply currency exchange, its gambling on the basis of the hope that an event shall occur which will have a direct affect on said currency. Its literally like playing russian roulette, its not as simple as you make it seem.

 

[Tukraq]

Don't this Sheikhs know, that they perform FOREX everyday when they exchange Shilling for Dollar ?

 

[Tukraq]

I knew you would be against them, the whole world uses credit card does that mean we should too? Forex is not simply currency exchange, its gambling on the basis of the hope that an event shall occur which will have a direct affect on said currency. Its literally like playing russian roulette, its not as simple as you make it seem.

Wait why wouldn’t you use a credit card

 

[Abdalla]

To my understanding it is only haram if you trade using leverage. This means that you trade with money you don't have (leverage). You can leverage on a 1:1 ratio which means for every dollar you profit a dollar. However, you can also leverage 500:1 ratio, for every dollar you can win or lose 500 dollars. That's haram

 

[HalimaJ]

I knew you would be against them, the whole world uses credit card does that mean we should too? Forex is not simply currency exchange, its gambling on the basis of the hope that an event shall occur which will have a direct affect on said currency. Its literally like playing russian roulette, its not as simple as you make it seem.

The fatwas I have seen state it is halaal
as long as some conditions are met. You can follow these Sheikhs if you want and we are free to follow who we want.

You cannot compare a credit card to currency exchange. The two are incomparable.

I refuse to follow people who claim something is haraam but dabble in it anyway. You can though.

The housing market and even starting a small business is Russian roulette to some extent. Does that mean as Muslims we can't buy and sell houses or start our own companies?

 

[TekNiKo]

To my understanding it is only haram if you trade using leverage. This means that you trade with money you don't have (leverage). You can leverage on a 1:1 ratio which means for every dollar you profit a dollar. However, you can also leverage 500:1 ratio, for every dollar you can win or lose 500 dollars. That's haram

Thank you!

 

[Abdalla]

Many of you don't know what Forex trading is. They think forex trading is the same as exchanging their dollars to pounds to buy shisha in London.

In Forex two people can enter the same trade at the same time but adjust their risk/leverage wherein one profits 1000 dollar and the other just 1 dollar. Can't you see the haram element in this? Its not that you put in more money, you'll get a bigger reward but based on the leverage you used.

 

[Tukraq]

The fatwas I have seen state it is halaal
as long as some conditions are met.

You cannot compare a credit card to currency exchange. The two are incomparable.

Credit cards are only haram if your not paying on time and accruing interest payments, a reasonable person worried about there credit score obviously pays on time every time and thus no interest, Forex aka foreign exchange however is all good though

 

[Saredo]

I was about to get into it aswell, thanks Walal

Yep. Get more info on the subject. There are conditions but Terri-Alpha explains it better.

 

[Abdalla]

Credit cards are only haram if your not paying on time and accruing interest payments, a reasonable person worried about there credit score obviously pays on time every time and thus no interest, Forex aka foreign exchange however is all good though

When you sign a contract, you agree that if you don't pay in time the company can bill you interest. You already agreed with interest under a certain circumstances.

 

[bluebird]

Credit cards are only haram if your not paying on time and accruing interest payments, a reasonable person worried about there credit score obviously pays on time every time and thus no interest, Forex aka foreign exchange however is all good though

nah it’s haram because you have to agree to pay interest if for some reason you can’t pay (and life happens) I heard some sheikhs say it’s allowed if you have need to as long as you don’t let it get into interest but most people’s definition of need is probably different than “ikrah” according to Islam

 

[Lostbox]

Somali sheikh - everything haram