Repaying a loan in a foreign currency
Question
Zaid is in Dubai. Aslam, from Pakistan, is in need of some loan. Zaid does not have a foreign currency account in Pakistan, so when Zaid transfers 2000 dirhams to Aslam, Aslam receives Pakistani rupees equivalent to 2000 dirhams. After one year, the Pakistani rupee value has dropped, now will Aslam return the same amount 2000 dirhams or Pakistani rupees that he received a year back? Or should he return the rupees equivalent to current value of 2000 dirhams?
Answer
If the loan was given in dirhams, then dirhams will have to be paid back.
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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