Paying back a loan in a different currency

Answered according to Hanafi Fiqh by

Q: I gave a loan of 200 dollars to my friend a few years ago. I had these dollars from my aunt who gave them to me to deposit in my bank account. Now my friend is returning the amount to me but there is an issue, at that time it was equal to 105 Pakistani rupees per dollar… now it is 141 Pakistani rupees per dollar.

At what rate should he return this amount to me? If I take it at 141 rupees, he will have to pay extra (from 105/$ to 141/$) to make it equal to 200 dollars and if I take money it at the rate of 105 per dollar I will get a lesser amount. Kindly guide me what to do.

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A: He should return the dollars or return the current value of the dollars.

And Allah Ta’ala (الله تعالى) knows best.

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)