In 1998 I had given someone a loan of R33,000.

Answer

In 1998 with R33,000 one could have purchase 17.57 Kruger gold coins. That was the worth of the papers/ promissory notes you had given. Today, he must repay 17.57 Kruger gold coins. The value today is R485,302. This is the way to pay back loans acquired years ago.

SOUTH AFRICA 6056

ti says that according to the view of Imaam Abu Hanifah (Rahmatullah alayh) and Imaam Abu Yusuf (Rahmatullah alayh), when the 'thamaniyat' (currency aspect) is cancelled, then the rules of Sarf (trading in gold and silver) will not apply, hence selling foreign currency which is not representative of gold and silver may be sold on credit. Is this right?

A. No, it is wrong. Foreign currency may not be sold on credit. The rules of Sarf will apply. The view of Imaam Muhammad (Rahmatullah alayh) applies to foreign currency sales, not the view of Shaikhain (Rahmatullah alayhima). Furthermore, the view of Shaikhain is based on the cancellation of thamaniyat by the trading partners (buyer and seller).

However, the thamaniyat of dollars, rands, pounds, etc. is not cancelled when trading with these currencies. The trading partners who trade with foreign currency do not cancel the currency factor. It will remain currency (thaman) whereas in the case of 'fuloos' during Imaam Abu Hanifa's era it was possible for the buyer and seller to cancel the thamaniyyat of their copper coins. This cannot be done by the trade partners with today's currencies. Only governments can abolish the thamaniyyat.