FatwaFederal TerritoriesTransactions & Finance
IRSYAD HUKUM SIRI KE - 729: BERHUTANG WANG DOLLAR DAN MEMBAYARNYA MENGGUNAKAN WANG RINGGIT
Can a debt borrowed in US dollars be repaid in Malaysian ringgit?
Short answer
A debt of money should be settled in the same currency that was borrowed, so a dollar debt is repaid in dollars.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Federal Territories Mufti Office
- Date
- Status
- Opinion (irsyad)
- Series
- Irsyad al-Hukum (Umum)
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
A debt of money should be settled in the same currency that was borrowed, so a dollar debt is repaid in dollars. If the debtor wishes to pay in another currency such as ringgit, he needs the creditor's agreement and must pay at the prevailing exchange value at the time of settlement. If the difference in value exceeds one third of the debt and harms the creditor, both parties should negotiate, and if they cannot agree the matter is referred to a judge or court.
Written in our own words from the original fatwa — check the source before acting on it.
Oleh itu, orang yang berhutang wajib membayar hutang mengikut apa yang dipinjam. Begitu juga, jika seseorang itu berhutang sejumlah wang seperti meminjam wang dollar maka hendaklah dia melangsaikannya dalam matawang dollar.
Read the full fatwa on the Federal Territories website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Federal Territories Mufti Office. “IRSYAD HUKUM SIRI KE - 729: BERHUTANG WANG DOLLAR DAN MEMBAYARNYA MENGGUNAKAN WANG RINGGIT”, 2 December 2022. https://muftiwp.gov.my/ms/artikel/irsyad-hukum/umum/5461-irsyad-al-fatwa-siri-ke-729-berhutang-wang-dollar-dan-membayarnya-menggunakan-wang-ringgit. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/repay-dollar-debt-with-ringgit/