Back to search

Is it permissible to fix the debt in US dollars due to the debtor's delay and procrastination in payment and the collapse of the local currency's value?

1 min readAlso available in العربية

It is permissible for the creditor and debtor to agree on repaying the loan in another currency, provided that the agreement is not made at the time of the loan or before the time of payment, and that it is at the exchange rate at the time of repayment, and that the exchange takes place in the same sitting. This is because money shares the rulings of gold and silver regarding the requirement of immediate exchange when sold for a different type.

If the debtor delays repayment and the currency depreciates, there are different opinions on this matter. However, if the delay is due to procrastination by a solvent debtor, then he must bear the loss. If the debtor is unable to pay, then if the depreciation is slight (less than one-third), the debtor does not bear it. But if the depreciation is significant (one-third or more), then reconciliation and mutual agreement between the two parties on bearing the loss is necessary. The estimation of the loss and the repayment of the debt in the other currency must be at the time of performance, not before, to avoid usury.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy