Sarf

Sarf is exchanging one form of money for another, such as currency for currency, or gold for silver.

What it means for me: Two conditions apply whenever sarf takes place. The exchange happens hand-to-hand, within the same sitting, with nothing deferred. When the two sides are the same kind, such as gold for gold, the amounts must also be equal. These conditions are why a mufti is often asked about money-transfer apps and gold bought on installment.

Example: A traveler exchanges dollars for local currency at an airport kiosk, receiving the cash immediately. That immediate handover is exactly what sarf's condition requires.

Do not confuse with: An ordinary sale of goods, a loan, and hawalah, the transfer of a debt. A sale of goods can be deferred or paid in installments without issue. Sarf cannot. A loan or a hawalah moves a debt between people. Sarf exchanges money for money on the spot instead.

If scholars differ: Scholars differ on whether an instant electronic transfer satisfies the hand-to-hand condition. Some treat immediate settlement through an app as equivalent to a physical handover. Others require money to actually change hands, not merely a screen confirmation.