Resolution No. 231 (2/24) on Monetary Inflation and Currency Rate Fluctuation
In the Name of Allah, the Entirely Merciful, the Especially Merciful
All praise is due to Allah, Lord of the worlds, may the blessings and peace of Allah be upon our master Muhammad, the seal of prophets, on his family, and all his companions
Resolution No. 231 (2/24)
Monetary Inflation and Currency Rate Fluctuation
The Council of the International Islamic Fiqh Academy of the Organization of Islamic Cooperation, held its twenty-fourth session in Dubai (United Arab Emirates) on 7-9 Rabi’ al-Awal 1440, corresponding to 4-6 November 2019,
Having reviewed the research papers submitted to the Academy on the subject of: Monetary Inflation and Currency Rate Fluctuation,
Having listened to the extensive discussions on the subject,
Resolves the following
First, the Academy confirms resolution no. 42 (4/5) adopted at its fifth session and considers it applicable in cases of non-inflation and low inflation.
Second, hyperinflation is due, based on its evaluation, either to mutual consent, or the judiciary, or arbitration, depending on the circumstances.
Third, if hyperinflation occurs after the emergence of debt, nothing prevents the creditor and the debtor from agreeing to settle it with its value or by distributing losses between the two parties as a reconciliation. Also, It is permissible to sign the settlement through the judiciary or arbitration, but it is not permissible to previously agree on this matter when signing the contract.
Fourth, the Academy confirms the recommendation addressed to Muslim governments in resolution no. (115/9/12).
Allah Knows Best