I lent a man a sum of money in US dollars and agreed with him to repay the amount in dollars, but the price of the dollar changed from that day
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The questioner : I lent a man a sum of money in US dollars and agreed with him to repay the amount in dollars as well, but the price of the dollar changed from the day I lent it to him, specifically by increasing, and there is now a large difference in price. Is this difference considered riba?
The Shaykh : If a person lends someone dollars, only dollars are established in the borrower's liability, whether that was stipulated or not. Likewise, if he lends him Saudi riyals, only Saudi riyals are established in his liability, whether that was stipulated or not. The borrower is not required to pay anything other than that, whether its value increases, decreases, or remains as it is.
If he lends him a dollar that is worth five riyals, for example, and then its price increases until it reaches ten riyals, he is required to pay him in dollars, even if the value has increased relative to the Saudi riyal. If he lends him dollars that are worth five riyals at the time of the loan, and then the dollar decreases until it is worth only three, he is only required to pay in dollars.
The important point is that whoever borrows something, only what he borrowed is established in his liability. However, if the borrower wants to pay the lender in another currency and they agree on that, there is no harm, but on the condition that it is at the price of that day and that they do not separate with anything between them. This is based on the hadith of Ibn 'Umar (may Allah be pleased with him and his father), who said: "We used to sell camels at al-Naqi' for dinars, so we would take dirhams for them, and for dirhams, we would take dinars. So we asked the Messenger of Allah (peace and blessings be upon him) about that, and he said:Bulugh al-Maram 7:28."
In summary: the borrower who borrowed dollars is only required to pay in dollars, whether their value increases or decreases.
He is asking: Is this riba? Meaning, if the value increases?
I say: This is not riba, because what is obligatory for you is to perform what you borrowed, whether it increases or decreases.
The questioner : May Allah bless you.
The Shaykh : If a person lends someone dollars, only dollars are established in the borrower's liability, whether that was stipulated or not. Likewise, if he lends him Saudi riyals, only Saudi riyals are established in his liability, whether that was stipulated or not. The borrower is not required to pay anything other than that, whether its value increases, decreases, or remains as it is.
If he lends him a dollar that is worth five riyals, for example, and then its price increases until it reaches ten riyals, he is required to pay him in dollars, even if the value has increased relative to the Saudi riyal. If he lends him dollars that are worth five riyals at the time of the loan, and then the dollar decreases until it is worth only three, he is only required to pay in dollars.
The important point is that whoever borrows something, only what he borrowed is established in his liability. However, if the borrower wants to pay the lender in another currency and they agree on that, there is no harm, but on the condition that it is at the price of that day and that they do not separate with anything between them. This is based on the hadith of Ibn 'Umar (may Allah be pleased with him and his father), who said: "We used to sell camels at al-Naqi' for dinars, so we would take dirhams for them, and for dirhams, we would take dinars. So we asked the Messenger of Allah (peace and blessings be upon him) about that, and he said:
There is no harm in taking them at the current rate so long as you do not separate leaving something still to be settled (from the exchange).
لا بأس أن تأخذها بسعر يومها ما لم تتفرقا وبينكما شيءIn summary: the borrower who borrowed dollars is only required to pay in dollars, whether their value increases or decreases.
He is asking: Is this riba? Meaning, if the value increases?
I say: This is not riba, because what is obligatory for you is to perform what you borrowed, whether it increases or decreases.
The questioner : May Allah bless you.