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Why I cant issue refund for buyer??? Please helpppp!!

I have recently received return request form buyer. He bought 2 items and claim that one is damage so he want to do a return. I prefer he keep the item and I will refund the money. But the problem is when I click on ISSUE A REFUND button nothing is happening and there is info appearing to contact pay pal. So I did contact pay pal. They told me I need to change currency on my account in order to issue this refund. So I did.  But I am still not able to do refund. Anyone had similar situation? I dont know what to do.  I contacted pay pal again, now waiting for their response.. but maybe any of you can help too.

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