Question Summary:
At what exchange rate do I have to pay back a loan?

Question Detail:

 
I live and work in Dubai. I purchased some gold for which my cousin paid for it in Dirhams by his credit card. The arrangement was that I will pay the equivalent in Indian Rupees to his mother in India. The gold was purchased on 10 Dec. The exchange rate on that day was let’s say Dirhams 16 to a Rupee.
Do I have to pay his mother the equivalent of Indian Rupees based on the calculation on the day of purchase or according to the exchange rate on the day I actually pay her which will not be before the 20th of Dec, irrespective of the fact that the Indian Rupee may have appreciated or depreciated during the intervening period.

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
You are required to consider the rate of exchange of the day you purchased the jewellery. Hence, according to the example given, the rate of 16 Dirhams to a Rupee will be considered regardless of whether the Rupee has appreciated or depreciated. [1]
 
And Allah Ta’āla Knows Best
Nabeel Valli
Student Darul Iftaa
Lusaka, Zambia
Checked and Approved by,
Mufti Ebrahim Desai.
www.daruliftaa.net