The Majlis Archive
Finance - Banking - Business The Majlis Vol 26 No 10, p.3

I loaned a person a large sum of money some years ago.

Question

I loaned a person a large sum of money some years ago. I gave him Saudi Riyals. The agreement was for him to repay me with US dollars. He has not paid the debt for several years. He has now decided to pay me in dollars. Which rate of exchange will be valid for this deal? The rate when I gave the loan or today‟s rate? Can I ask for riyals?

Answer

The debtor has to repay you in one of the two following ways:

1) In riyals as you desire.

2) In gold, i.e. the weight of gold which the riyals you loaned him/her could have procured at that time when you gave the loan. The rate of exchange is baseless nonsense in terms of the Shariah.

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The Majlis Vol 26 No 10
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Appears under HE KHINZEER TENDENCY OF SANHA. This heading is the nearest headline at or before the page and is approximate. Do not cite it alone.

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