« go back

I was lent $10 in the US and now I want to pay the guy back 10 euro (out of convenience) in France. Is that Ribbis?

 

 

 

Loans and currency?
keeping within the guidelines of the Laws of Ribis

A general guide – Compiled by Rabbi Shabsi Tayar

 

  1. A loan may be advanced in local currency with a stipulation that it be returned, without interest, in the same currency.
  2. A loan may be advanced in foreign currency with a stipulation that it be returned, without interest, in the same currency, if the
    borrower already possesses, when receiving the funds, at least something (one dollar or even one cent) in that currency.
  3. A loan may not be advanced in one currency with a stipulation that it be returned, without interest, in a different currency if the stipulated exchange rate is the one current at the commencement of the loan.
  4. A loan may be advanced in local currency with a stipulation that it be returned, without interest, in a foreign currency if the stipulated exchange rate is the one which will be current when the loan is repaid.
  5. A loan may be advanced in foreign currency with a stipulation that it be returned, without interest, in a different currency if the stipulated exchange rate is the one which will be current when the loan is repaid, if the borrower already possesses, when receiving the funds, at least something (one dollar or even one cent) in that currency.
  6. The above notwithstanding, if the contract is worded in such a way so that the terms used between the lender and borrower do not
    imply an explicit loan and could be understood as a purchase of foreign currency conversion, then the “loan” may be advanced in one currency with a stipulation that it be returned, without interest, in a different currency, even if the stipulated exchange rate is the one current at the advancement of the funds, so long as the “borrower” already possesses, when receiving the funds, the entire amount of currency that s/he will be obligated to return on the due date.
  7. For actual currency conversions, that is, not a loan, one may always purchase currency if the buyer does not have to wait to receive the funds he purchased, even if the buyer or seller profits from the transaction.

 

 

#6842


Add Comment

Your Email address will not be published