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?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
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.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/55678
Where this answer came from
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- 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.
- Read the full ruling
- Read the full answer on Ftawy