Is it obligatory to repay a loan in the old value of the foreign currency or its value today, given that the borrower and lender agreed upon repayment in foreign currency?
The majority of scholars hold that the debtor is obliged to repay the debt in the same currency he received, as long as it is in circulation, regardless of changes in its exchange rate. However, a group of contemporary scholars are of the opinion that a change in the currency's exchange value should be considered if the change is excessive and causes significant harm. It is not permissible to agree at the time of contracting the loan to repay the debt in another currency, but it is permissible at the time of repayment to agree to do so at the exchange rate on the day of repayment. Similarly, it is not permissible to agree to record the debt in an amount equivalent to its value in gold or another currency, whereby the debtor is obligated to repay it in that form.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- 187578
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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