Glossary
Sarf
صرفDefinition
The exchange of one currency for another — a specific contract type in classical Islamic commercial law.
The fiqh of sarf comes from the Prophet's ﷺ hadith specifying that an exchange of different currencies must be hand-to-hand (settled in the same sitting), though equal quantity is not required.
Modern spot forex is treated as sarf by AAOIFI and most contemporary scholars. The T+2 settlement convention is widely accepted as meeting the 'same sitting' requirement.