What is the ruling on exchanging gifts with friends and relatives during festivals and birthdays?

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.

If the respected questioner refers to Christian festivals, then it should be known that it is  prohibited to exchange gifts during such festivals, celebrate them or believe that they are days of joy as a way to join the non believers during their festivals.

Imaam Ibn Al-Qayyim and many other scholars have reported these actions to be prohibited according to the consensus of the Muslim scholars.

It is not permissible to gift Muslims or non Muslims during such occasions because gifting them means approving their false and polytheistic faith. Any Muslim who does so is indeed at risk with Allaah, and exposing himself to His Wrath and punishment.

Allaah Knows best.