Giving a loan in foreign currency
Q: I have some money in the form of foreign currency which I bought for investment purpose a year ago at 15.75/ unit of currency. Now one of my friends needs some money and he approached me to lend him some amount for a few months. As I don’t have money in the form of Pakistaani Rupees, I told him to take foreign currency from me and get it exchanged with Pakistaani rupees. But I put one condition that I have bought that currency @ 15.75/unit and now the market rate of that currency is 13/unit. I gave him 3000 units of currency no matter at which rate he will sell those units in the market but he will have to return me the money @ 15.75 on which I originally bought that units. For example if now he sold that 3000 units @ 13 in market he will get Rs.39000 but he will have to return me the money @ 15.75 which becomes Rs.47250. Is getting that extra amount justified by Shariah? Is it a Halaal transaction to do?
A: You have the right to sell him at the price that is agreeable to both. You should ensure that you confirm the rate at the inception of the sale.
And Allah Ta’ala (الله تعالى) knows best.