Amount to pay back when paying back a loan in a different currency
Question
My father borrows money from one of his friend in Pakistani rupees 2 Lac which was approximately 1235$ but at that time I was not in a condition to clear his debit and I take the responsibility to clear my father's due after some time. Now I'm stable to clear my father's due but now the price-hike of every thing. Should I pay my father's due according to pakistani rupees or $. My father too the money in Pakistani rupees.
Answer
Since the loan was taken in Pakistani rupees, the loan will have to be settled in Pakistani rupees. However, if you wish to settle it in dollars, then you will have to pay the amount of dollars which equal 2 laakh rupees at the current exchange rate (i.e. at the time of paying back the loan).
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Zakaria Makada
- Checked & approved by
- Mufti Ebrahim Salejee (Isipingo Beach)
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