Libya's Central Bank official, Sheikh Hamza Aboufars, has announced his current stance on $2000 personal transactions, affirming that he now permits them. This decision comes after he reviewed the implementation mechanisms and details of the transaction stages. Aboufars is the head of the Central Supervisory Body for Sharia Compliance at the Central Bank of Libya.
Aboufars had previously refrained from issuing a fatwa on the matter due to his preoccupation with treatment and incomplete understanding of the issue. He participated in a meeting of the Research Council affiliated with the Dar Al-Ifta, which concluded that the transaction was not permissible. Aboufars stated that he agreed with this stance at the time.
However, Aboufars' position changed after the Research Council's head sent a correspondence to the Central Bank of Libya's governor, who in turn referred it to the Central Supervisory Body for Sharia Compliance. The body held several meetings to discuss the transaction details and mechanisms, and Aboufars consulted with specialists. He concluded that the transaction was free from Sharia violations.
According to Aboufars, the process begins with the customer entering the platform and providing their data, including their national number and registered phone number. The customer then awaits approval from the Central Bank of Libya, which may take a week or several weeks. Aboufars emphasized that this stage does not involve buying or selling but rather organizational procedures to verify the customer's data.
After obtaining approval, the customer selects one of the exchange companies linked to commercial banks and expresses their desire to receive dollars in cash. Aboufars considered this step a request for purchase, not a binding contract. The actual exchange contract occurs when the customer visits the commercial bank, and the equivalent value in Libyan dinars is deducted from their account.
The customer signs official documents and receives a receipt confirming they received the amount. The exchange rate is known when the transaction is completed, either through the bank's bulletin or the value the customer pays for the dollar. Aboufars argued that the steps preceding the bank visit do not constitute a sale or binding promise but rather preparatory procedures for the currency purchase.
The Central Supervisory Body for Sharia Compliance at the Central Bank of Libya previously stated that the $2000 personal transaction was permissible, citing that the reservation did not represent a deferred sale contract or binding promise. However, Dar Al-Ifta maintains an opposing stance, arguing that the current transaction mechanism is not permissible under Sharia law.
Key points
- The Central Bank of Libya's official permits $2000 personal transactions after reviewing implementation mechanisms.
- The transaction process involves several stages, including customer data verification and approval from the Central Bank.
- Dar Al-Ifta and the Central Bank's Sharia Compliance Body have differing stances on the permissibility of the $2000 personal transaction.
