In the Name of Allāh,

the Entirely Merciful, the Especially Merciful

Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.

Resolution No. 42 (4/5) The Changing Value of Currency

The Council of the International Islamic Fiqh Academy of the Organization of the Islamic Conference, holding its 5th session in Kuwait City, State of Kuwait, on 1–6 Jumādā al-Ūlā 1409h (10–15 December 1988),

Having examined the research papers of the Academy’s members and experts concerning The Changing Value of Currency (Rates Fluctuation),

Having listened to the discussions on the subject,

Having recalled the Academy resolution no. 21 (9/3) which agreed that banknotes, such as legal currencies, possess all characteristics of valuables, and are therefore subject to the rulings of Shariah relating to gold and silver, with regard to Ribā, Zakāh, Salam, and all their transactions,

Resolves

The norm in the settlement of debt incurred in a specific currency is that it should be settled in the same (currency), rather than in value terms, for debts must be settled in an identical resource, and fixed debts, whatever their origin, are not permissible to be tied to the level of prices.

Indeed, Allāh is All-Knowing.