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. 231 (2/24) Inflation and the Changing Value of Currency

The Council of the International Islamic Fiqh Academy of the Organization of Islamic Cooperation, holding its 24th session in Dubai, United Arab Emirates, on 7–9 Rabīʿ al-Awwal 1440h (4–6 November 2019),

Having examined the research papers submitted to the Academy concerning

Inflation and the Changing Value of Currency,

Having listened to the in-depth discussions on the subject,

Resolves

First: the Academy confirms resolution no. 42 (4/5) issued at its fifth session and considers it applicable in cases of non-inflation and low inflation.

Second: in case of hyperinflation, its calculation on reconciliation, otherwise it is resorted by mutual consent, or by the judiciary, or by arbitration, depend- ing on circumstances.

Third: if hyperinflation occurs after the emergence of debt, nothing prevents the creditor and the debtor from agreeing, at the time when it is due, to settle it at its value or by dividing the losses between the two parties as a consensual reconciliation. Also, it is permissible to make a settlement through the judici- ary or arbitration, but it is not permissible to make such an agreement at the time of the contract.

Fourth: the Academy confirms the recommendation addressed to Muslim governments in resolution no. 115 (9/12).

Indeed, Allāh is All-Knowing.