Which exchange rate should he pay me with?

· 18 Safar 1429 AH1 min readFatwa 16311English
Finance and Commerce

Question

im currently studying overseas and i come to south africa for holidays. one of my teachers asked me to buy something for him. he did not have enough money with the business concerned so he asked us to pay the remainder and he will pay me when i come back. how should he pay me? can i ask for dollars? should he pay me in his currency? or should he pay me in rands? which exchange rate should he pay me with, the day of purchase or the day he is paying me? please also give the best way i should ask him to pay me. jazakallah salaams

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatuh

If an agreement on which currency you will be repaid was not made prior to the purchase, then the debtor may use any currency in use to repay you as long as it is according to the exchange rate of the day of purchase, not the day of repayment.

(Raddul Muhtar, Vol. 4, P. 534, HM Saeed)

(Fathul Qadir, Vol. 6, P. 276-277, Rashidiyya)

And Allah knows best

Ml. Asif Umar,
Student Darul Iftaa

Checked and Approved by:

Mufti Ebrahim Desai

References (Arabic / Urdu sources)

عند أبي يوسف تجب قيمته يوم البيع.....وحاصل ما مر : أنه على قول أبي يوسف المفتى به لا فرق بين الكساد والانقطاع والرخص والغلاء في أنه تجب قيمتها يوم وقع البيع أو القرض لا مثلها

( فقال أبو يوسف : عليه قيمتها يوم البيع ) قال في الذخيرة : وعليه الفتوى ( لأنه مضمون به ) أي بالبيع

Answered by
Ml. Asif Umar
Checked & approved by
Mufti Ebrahim Desai
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