Q 2: What is
the ruling on taking a loan in a certain currency and repaying it after a few months in a different currency
even though the price of the currency may have changed during the period of the loan?
A:
When a person takes an interest free loan, and repays the loan in a different currency at the rate of exchange at the time of repayment without a condition that benefits the lender, it is permissible, because it involves cooperation between Muslims and fulfilling their needs. However, if the lender stipulates that the borrower has to pay interest on this loan or that a borrower has to give it back in a certain currency or offer any benefit to the lender, then it is unlawful. This is because it is a kind of usury which is forbidden according to the Qur’an, the Sunnah, and the consensus of scholars. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.
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The ruling on taking...
