Question:
I lent someone $299 on November 20, 2025. The agreement was that repayment may be made anytime the לוה wanted. He has no access to $$ and I assumed that the repayment would be made in shekalim. The currency exchange rate on 11/20/25 was $1=3.2467, which translates into 970.76 shekels. Payment of 1000 shekels was made today. Today’s exchange rate is $1=3.0032 shekels, which translates into 897.96 shekels. Clearly I was overpaid and need to refund either 1,000-971 (rounded shekel value of $299 on 11/20/25)=29 shekels. Or, 1,000-898 (rounded shekel value of $299 on 7/10/26)=102 shekel. When I told the לוה that I believe he overpaid, replied the balance is a מתנה. I don't want to accept a מתנה. I would like to refund the excess repayment but I don't know if I use the excahnge rate at the time of the loan or at the time of repayment. TY.
Answer:
Hello,
What was done was incorrect because lending dollars in Israel is considered seah bseah, which is not allowed (unless the borrower has some dollars in his possession). That being the case, the halacha is that the borrower is to pay you the lower rate, which in your situation would be 897.96 shekels. The fact that the borrower said he is mochel is not enough, because you still owe him the difference. However, if you speak to him and he says that, as far as he is concerned, it is considered as if you already paid him the 102.04 shekels that you owe him, then you may keep the difference.
Best wishes
