What is the ruling on a lender stipulating that the borrower must repay the money in dollars if he had taken it from him in dollars?
Machine translationRead the Arabic original
The questioner : In the matter of loans, for example, if a person wants to borrow from another person, and he borrows the amount in dinars on the condition that he repays it in dollars, and the lender stipulated this condition, is this condition valid?
The Shaykh: No.
The questioner : It is not valid.
The Shaykh : Because the currency may rise and fall; rather, he should repay him in dinars at their purchasing power on the day he borrowed it.
The questioner : Is this possible?
The Shaykh : How is it possible? What do you mean by possible? Do you mean in reality or in terms of the ruling?
The questioner : In terms of the ruling.
The Shaykh : This is the obligatory thing. How could it not be?
The questioner : ... .
The Shaykh : Listen, if you lent me one hundred dinars a year ago, and today one hundred dinars equals fifty dinars, and fifty dinars do not buy what I used to buy with one hundred dinars today in terms of wheat, barley, milk, and the necessities of life, let alone other things, then it is not permissible for me to be merely formalistic and outwardly repay you one hundred dinars and say to you, "My brother, this is what I borrowed from you, and here I am paying you in cash," and that is it.
The questioner : What is the criterion?
The Shaykh : The criterion is , So, did the one who lent you one hundred dinars do good or did he do harm?
The questioner : Better.
The Shaykh : Did he do good? When you repaid him one hundred dinars at a time when the value of the dinar had dropped, did you do him good or did you do him harm?
The questioner : Did you do him harm.
The Shaykh : That is it.
The questioner : Meaning, the valuation should be based on gold as an obligation, not as a recommendation.
The Shaykh : No, it is not as a recommendation.
The questioner : So, for example, if he valued it for him in dollars.
The Shaykh: When?
The questioner : At the time of payment, as some people do.
The Shaykh : If, at the time of payment, he gives him the amount of dollars that equals the purchasing power of the one hundred dinars on the day he received them from him.
The questioner : Would there be a difference in the currency?
The Shaykh : Yes, in the currency. We said that for trade it is not permissible, but for repaying a debt it is permissible.
The questioner : Is it prohibition or avoidance?
The Shaykh : What is it?
The questioner : Is the expression "avoidance" or "prohibition" stronger?
The Shaykh : All roads lead to the mill, so avoid it; it is forbidden for you. Both are the same; there is no difference.
The Shaykh: No.
The questioner : It is not valid.
The Shaykh : Because the currency may rise and fall; rather, he should repay him in dinars at their purchasing power on the day he borrowed it.
The questioner : Is this possible?
The Shaykh : How is it possible? What do you mean by possible? Do you mean in reality or in terms of the ruling?
The questioner : In terms of the ruling.
The Shaykh : This is the obligatory thing. How could it not be?
The best of you is the best of you in repaying debts, and I am the best of you in repaying debts.
خيركم خيركم قضاء ، وأنا خيركم قضاءThe questioner : ... .
The Shaykh : Listen, if you lent me one hundred dinars a year ago, and today one hundred dinars equals fifty dinars, and fifty dinars do not buy what I used to buy with one hundred dinars today in terms of wheat, barley, milk, and the necessities of life, let alone other things, then it is not permissible for me to be merely formalistic and outwardly repay you one hundred dinars and say to you, "My brother, this is what I borrowed from you, and here I am paying you in cash," and that is it.
The questioner : What is the criterion?
The Shaykh : The criterion is
The best of you are the best of you in repaying debts, and I am the best of you in repaying debts.
خيركم خيركم قضاء وأنا خيركم قضاءWhoever does good to you, reward him. If you are not able to reward him, pray for him until you know that you have rewarded him.
من أحسن إليكم فكافئوه فإن لم تستطيعوا أن تكافئوه فادعوا له حتى تعلموا أن قد كافأتموهThe questioner : Better.
The Shaykh : Did he do good? When you repaid him one hundred dinars at a time when the value of the dinar had dropped, did you do him good or did you do him harm?
The questioner : Did you do him harm.
The Shaykh : That is it.
The questioner : Meaning, the valuation should be based on gold as an obligation, not as a recommendation.
The Shaykh : No, it is not as a recommendation.
The questioner : So, for example, if he valued it for him in dollars.
The Shaykh: When?
The questioner : At the time of payment, as some people do.
The Shaykh : If, at the time of payment, he gives him the amount of dollars that equals the purchasing power of the one hundred dinars on the day he received them from him.
The questioner : Would there be a difference in the currency?
The Shaykh : Yes, in the currency. We said that for trade it is not permissible, but for repaying a debt it is permissible.
The questioner : Is it prohibition or avoidance?
The Shaykh : What is it?
The questioner : Is the expression "avoidance" or "prohibition" stronger?
The Shaykh : All roads lead to the mill, so avoid it; it is forbidden for you. Both are the same; there is no difference.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.