Ruling on repaying a debt in a currency other than the one borrowed

Question:
I borrowed a sum of money from a friend in US dollars. Is it permissible to repay this amount with an equivalent amount in another currency, such as the Yemeni Rial, for example, or the Pound?

Answer:
Yes, there is nothing wrong with a person borrowing one currency and then repaying it in another currency by mutual agreement. If the owner of the first currency is willing to accept another currency in exchange for it, there is no harm in that, provided it is hand-to-hand without delay. It is established from the Messenger of Allah (peace and blessings be upon him) that it was said to him: “O Messenger of Allah! We sell for dirhams and take dinars, and we sell for dinars and take dirhams?” He said (peace and blessings be upon him): .
So if you borrow, for example, one hundred dollars, and you give its owner another currency in exchange for it, such as the Saudi or Yemeni Rial, or the Jordanian or Iraqi Dinar; hand-to-hand, according to the value, there is nothing wrong with that. Or you may increase it beyond that, because you see that he is being generous to you, so you increase it beyond that, and there is nothing wrong with that; due to his saying (peace and blessings be upon him): .
Likewise, if he sells you a car for ten thousand dollars, for example, and then you give him the equivalent in dinars or Saudi or Yemeni Rial, or something similar in other currencies; there is nothing wrong with that, but on the condition that the exchange takes place in the meeting, and that you do not separate while anything remains between you, and that you give it to him at the price of the day, at the time of exchange. Yes.