Q&A: Is There Any Problem with Exchanging Currency at a Currency Exchange (Money Changer)?
Originally published:
This is an English translation (via GPT-5.4). Read the original Hebrew version.
Is There Any Problem with Exchanging Currency at a Currency Exchange (Money Changer)?
Question
Hello Rabbi,
Is there any problem with exchanging currency at a currency exchange (money changer)?
I’m asking from the perspective of interest, since they profit from fluctuations in the exchange rate.
Answer
I don’t think so. That is how the rate is defined: there is a difference between the buying rate and the selling rate. Beyond that, this is a sale, not a loan.
Discussion on Answer
In my opinion, definitely yes.
Thank you to the Rabbi for the answer; I’ll use these services.
So based on the Rabbi’s answer, I understand that it’s permitted to use an internet service where I transfer them an amount in the United States from my American account in dollars to their American bank account, and they transfer the same amount to Israel, convert it into shekels, and deposit the amount into my Israeli bank account.
Their profit is 1.5% off the Bank of Israel representative exchange rate.
These services are significantly cheaper than using the bank.
Actually, another step toward permission that I’m thinking of is that I’m the one giving them the money and they give me back less, so there’s no interest here 😊