Inflation and Riba : lending involving two currencies

Fatawa Question

As-Salaamu Alaykum Wa Rahmatullah Dr. Kahf, InSha'Allah this finds you in the best of health and in an increasing state of Iman. I need to further clarify my understanding regarding this matter, even though this article sheds some light on the issue (http://islamqa.com/en/ref/105294) My relatives in Bangladesh asked for a loan from my parents. We sent them remittances in two different instances of $ 1000 and $ 3000 for a total of $ 4000. While the loan amount originated in dollars, due to the remittance process, they received the money in Taka (Bangladeshi currency). The value of the Taka against the dollar at the time of the loan was around $ 1=70 Taka whereas now it is around $ 1=76 Taka. My question is : in what currency should my relatives pay my parents back ? (at the time of lending, we did not stipulate any conditions regarding the currency of repayment). Jazaakum Allahu khayran in advance for your response. Wa Salaam, Rahmatullah P.s. we spoke during Baraa's Halaqa about Islamic finance.

Fatwa

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Publication Date

2011-10-31

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Loans

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-730622

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• MLA
• AMA