Is it permissible for the lender to convert the loan amount denominated in dollars to the local currency for fear of a decrease in the dollar's value, and is it permissible for him to convert it to dollars if its value increases?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The debt must be repaid in the currency in which it was borrowed. It is permissible to agree to repay it in another currency, provided it is equivalent to its value at the exchange rate on the day of repayment, and contingent upon immediate possession, based on the of Ibn Umar. It is recommended for the borrower to repay handsomely. Your friend is obliged to repay the debt in the same currency or its equivalent on the day of repayment, and any increase beyond that is permissible if given willingly.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/93619
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 93619
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy