Repaying a Dollar Loan in Riyals

Question:
Honorable Shaykh, if a person borrows a sum of money in dollars, is it permissible for him to repay the loan in Saudi riyals?

Answer:
If someone borrows dinars, or dollars, or borrows dollars from a person, is it permissible for him to repay them in dirhams? Yes, it is permissible. It is permissible to repay them in dirhams, but the exchange must take place in the assembly. That means you settle the account in the assembly. He says, “I owe you, for example, ten dollars. The dollar is four riyals, so that makes forty riyals. I will give you forty riyals for it.” There is no harm in that, but the dirhams must be delivered in the assembly. He must hand over the dirhams in the assembly. Yes.