Ruling on Repaying a Debt in Silver or the Like with Paper Currency

Question: The seventh question—and the last, meaning, in truth, it took up a large part of the session, but we do not want to neglect any of his questions—he says: A man borrowed a sum of French and Arab silver from another man, and he wants to settle what he owes in these days. Is it permissible for him to pay it in paper currency according to its market price, or not? Please issue a ruling, may Allah protect you, and we want a detailed answer regarding this issue.

Answer:
If a person owes another person francs or silver from another currency, there is no harm in settling and discharging that debt with paper currency; because paper currency is an independent type and that is an independent type, this is from paper and that is from silver, so there is no conflict. However, it must be hand-to-hand; he gives him what he needs at the market price, hand-to-hand, for the francs and for the other silver dirham.
Meaning: he looks at its value in the markets and gives him what corresponds to it, hand-to-hand, not on credit but hand-to-hand. And if he gives him something else out of caution and to avoid the disagreement of those who do not approve of that, such as giving him sugar, coffee, cardamom, raw materials, vessels, or the like in exchange for it, that is good, meaning: at the price; but the stronger and more apparent view with us is that there is no harm in compensating him for it with paper currency at the price according to the market. Yes.