Is it permissible to settle a deferred debt (e.g., deferred dirhams) by taking immediate possession of the equivalent value in a different currency (e.g., dinars) at the current market price?
Chapter on Riba (Usury) and Exchange (Sarf)
Al-Mughni
Book of Sales
Primary text
The correct position is that it is permissible to settle the deferred debt by paying the equivalent value at the current market price, provided no additional benefit is stipulated for accelerating the deferred payment. If nothing extra is given, it implies acceptance of advancing the deferred asset without compensation, similar to settling a debt with its own kind. The fact that the Prophet, peace be upon him, did not question Ibn Umar when he asked about immediate settlement supports this view.
Supporting text
Ahmad paused on this issue. Al-Qadi suggests two possibilities: prohibition (the view of Malik and the famous position of Al-Shafi'i) because the deferred debt is not yet due for immediate possession, meaning one side of the exchange is immediate possession and the other is delayed; or permissibility (the view of Abu Hanifa) because the debt fixed in the liability is considered as if physically possessed, implying acceptance of immediate settlement of the deferred amount.