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Fatwa #453834 June 2020Pakistan

Can i pay someone in a different currency?

Question

Assalamu Alaykum

If one buys an item for 10 000 Riyals. However, the seller wants 500 Riyals now, but the buyer does not have Riyals by him at the moment. So is it permissible for him to give the equivalent of 500 Riyals into British pound (with consent from seller) now and will give 9500 Riyals after? If permissible, which days rate will be considered when giving the pounds equivalent to 500 Riyals?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In principle it will be permissible to pay the seller in a different currency if he agrees. However the exchange rate will be calculated according to the date of the sale.[1]

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