Fatwa No : 82239
The ruling on giving a loan in Pakistani currency and then taking repayment in Dirhams.

The ruling on giving a loan in Pakistani currency and then taking repayment in Dirhams.

What do the respected Muftis of Islam and the guardians of Shari‘ah say regarding the following a man contacted another person in Dubai, either through a phone call or some other means, to borrow three hundred thousand Pakistani rupees for ten to twenty days. That person converted Dirham currency into three hundred thousand Pakistani rupees and sent the amount through hundi (hawala). The borrower received it. After ten to twenty days, the borrower returned the three hundred thousand Pakistani rupees to the lender. However, the lender then claimed that since the value of the Dirham had increased in the meantime, he had suffered a loss of eight thousand rupees compared to the Dirham value. Therefore, he demanded that the borrower pay him an additional eight thousand rupees as compensation. The question now is: Is it necessary for the borrower to pay this additional eight thousand rupees loss, or not?

الجوابُ حامِدا ًو مُصلیِّا ً

When the lender gave three hundred thousand Pakistani rupees as a loan, he is entitled to receive back the same currency, regardless of whether the value of the Dirham has decreased or increased. Therefore, his demand for the mentioned additional amount is undoubtedly impermissible, as it is based on usury (interest), and is thus not valid according to Shariah. It is necessary to avoid this.

مأخَذُ الفَتوی

قال الله تعالى ﴿يَاأَيُّهَا الَّذِينَ آمَنُوا لَا تَأْكُلُوا الرِّبَا أَضْعَافًا مُضَاعَفَةً وَاتَّقُوا اللَّهَ لَعَلَّكُمْ تُفْلِحُونَ﴾ (آل عمران: 130)۔