A man borrowed a sum of money in a specific currency from a person, and after a period of time, he wants to return his money. Does he have to return it in the same currency, especially if that currency has fallen in value?

The student : The Syrian pound; its value is falling. So-and-so borrowed ten thousand riyals from him, and he took them at their value last year in Syrian currency. Last year, they were thirty.

The Shaykh : What were the thirty?
The student : I mean thirty thousand Syrian pounds. They were ten thousand. He received Syrian currency from him, but he wrote on the paper that he would return ten thousand riyals after a year. So, he wrote the amount in riyals.

The Shaykh : In riyals.
The student : But I took pounds from him... but this year... and he did not spend them or utilize the thirty. And the prior agreement was that the amount I took from him, I would return it. I took Syrian currency, so I return Syrian currency. He bears the loss...

The Shaykh : Perhaps the Syrian pound has become inoperable?
The student : We did not tell him.

The Shaykh : Just like what happened with the German mark in World War I, he would give him a little more.
The student : I mean, according to what was written, yes.

The Shaykh : No, I do not give a ruling on the specific situation as it is; but I will give you the rule, and we apply the ruling based on it. Previously, it was not permissible... And peace be upon you, welcome, how are you? May Allah bless you. How is your health?
The student : A happy opportunity.

The Shaykh : May Allah make you happy. How are you?
The student : ...

The Shaykh : Welcome.

The Shaykh : ... Let us return and say, as an observed matter, some currencies fall and rise in a market close to each other. Some currencies fall into the abyss. As you know, the Syrian and Lebanese currencies and the dinar are currently stagnant... But I do not agree with you now that ten thousand or one thousand Syrian pounds should be given to me in exchange for this much of a strong currency, or the reverse. Why? Because we do not control the circumstances that occur in either currency. Is this clear?
The student : It is clear, yes.

The Shaykh : Now, let us leave that aside. Let us hold onto the other side. Zayd, a person, borrowed one thousand Syrian pounds five years ago. For those five years, the Syrian pound was equal to ten Jordanian dinars. The Jordanian dinar was bought for about ten Syrian pounds. Now, the Saudi currency was also close to the Jordanian dinar. Days passed, days returned, and the Syrian pound fell, as you know. The debtor came wanting to fulfill his debt after five years or more. He says, "Here, this is your one thousand Syrian pounds." He did not give him one thousand Syrian pounds in reality; he gave him one thousand Syrian pounds in form, but one thousand Syrian pounds in effect and reality is not so. And say the same for the Lebanese pound and the Iraqi dinar. Therefore, this debtor who borrowed one thousand Syrian pounds does not clear his conscience if he hands them over in kind, claiming, "These are the ones I borrowed from you." And my previous point returns: perhaps the Syrian currency has become completely inoperable, just as the German mark was affected in the war. I would tell him, "This one thousand Syrian pounds does not buy even a match." Therefore, he and the creditor must reach a mutual agreement. The debtor must reach a mutual agreement with the creditor, so that the heart of this creditor is pleased with what he receives in repayment from this debtor. Otherwise, it would be an injustice to him on one hand, and on the other hand, it would be a reason for not encouraging people to lend their money to others.
The student : ... The loss is between them.

The Shaykh : If the creditor is satisfied, meaning, or otherwise he wants to give him... No, this does not contradict... what is written on the paper. So, do you mean we give him the written amount, meaning we give him one thousand pounds?
The student : No, give him the thousand, for example, but I stipulate that he give me ten thousand.

The Shaykh : No, we have not clarified the principle. This condition is not permissible. Why did he do this? Notice that the currency might fall, for example, and it might also rise. But he says, "My brother, we give you the amount of money, but if it falls or rises, everything is calculated accordingly." This would be fair between the two parties.
Abu Layla : I mean, if it were on the same day, like when he borrowed this money from him, I do not want to take Syrian currency from you. I want to convert it to Saudi currency. How much does it come out to in Saudi currency? Because the Saudi currency is stable, so I take Saudi currency at the value it has now.

The Shaykh : No problem, but the problem is not solved. Is the Saudi currency, or any currency in the world, not subject to rising and falling?
Abu Layla: Yes.

The Shaykh : I mean, the question is that the causes are many, but death is one. So, we are now evaluating the Syrian currency and placing the Saudi currency. I borrowed one thousand Saudi riyals from you for a year. The one thousand Saudi riyals suffered—may Allah forbid—what the Iraqi dinar suffered. Does he repay in Saudi currency?
Abu Layla: No.

The Shaykh : If so, do not be affected by the names, but be affected by the value. If this currency maintains its value, then taking one qirsh more than that is riba (usury or interest).
Abu Layla : Now, what if you could do it in gold?

The Shaykh : ... And therefore, we say that the only thing that will resolve these problems for Muslims is to have gold currency and silver currency. Because paper currencies are converted into them. So, I always say that this paper currency has no intrinsic value. A sheet of paper, by its size and whiteness, benefits its owner more than the printed paper, but its value is a conventional value. If the conventional value changes due to political and economic circumstances that you do not know about, then the debtor must clear his conscience with the creditor in such a way that he does not make the creditor the loser. If it is necessary that someone loses, the debtor should be the one to lose.
The student : What if one of them agrees on a percentage of the fall of the pound or the riyal?

The Shaykh : It is the same issue, the same thing.
The student : Then, banks now, some of them say that the percentage we give...

The Shaykh : I mean, with knowledge of the future that there is no fall.
The student : The solution is that the debtor and the owner of the debt reach a mutual agreement.

The Shaykh : Yes, exactly.
The student : ... .

The Shaykh : Look, the Saudi riyal, I know it was strong and now it has fallen.
Abu Layla : It rose again. When I bought the pieces, meaning, on the same day...
The student : ... The yen is high and the mark is high.

The Shaykh : Welcome, may Allah keep you well.