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The question

Is it permissible to repay a loan in local currency (Dirham) when the original loan was in a foreign currency (Dollar), knowing that there is no intention of profit, and should the repayment value be equivalent to the dollar's value on the day the loan was taken or on the day of repayment?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

A loan is the lending of a sum of money to be returned in the same amount, without increase or decrease. It is not permissible to stipulate its return in another currency at the time of the contract, because this combines a loan and a sale, which is forbidden by Islamic law. For every loan that draws a benefit is usury (riba).

However, if an agreement is reached to repay the loan in another currency at the time of debt settlement, without a prior condition, then this is permissible, provided that the repayment is at the exchange rate of that day.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
55678
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.
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Read the full answer on Ftawy