Authored by: Saudi Fatwa Committee
Topic: Repayment of Debt in a Currency That Has Changed
The respected scholars have mentioned that if the ruler of a state prohibits the usage of a certain type of currency, and the debtor attempts to repay the creditor with that now-obsolete currency, the creditor is not obligated to accept it. This is because such currency becomes akin to defective or invalid money. Consequently, the creditor has the right to demand repayment in a different, valid currency equivalent to the value of the original loan.
If the loan was in gold coins, then repayment should be made according to the value of the gold coins at the time when the loan was initially taken. And Allah knows best.
Reference:
[Abdullah bin Aqeel: Fatawa: 280]
Topic: Repayment of Debt in a Currency That Has Changed
The respected scholars have mentioned that if the ruler of a state prohibits the usage of a certain type of currency, and the debtor attempts to repay the creditor with that now-obsolete currency, the creditor is not obligated to accept it. This is because such currency becomes akin to defective or invalid money. Consequently, the creditor has the right to demand repayment in a different, valid currency equivalent to the value of the original loan.
If the loan was in gold coins, then repayment should be made according to the value of the gold coins at the time when the loan was initially taken. And Allah knows best.
Reference:
[Abdullah bin Aqeel: Fatawa: 280]
