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The question

Is it permissible to agree upon repaying a debt with an amount greater than its original value if the purchasing power of the currency has decreased?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

A debt fixed in the Dhimma (liability) in a specific currency must be repaid in the same currency. The purchasing power of the currency does not affect the principal; a loan is repaid with its like. The jurists and the Islamic Fiqh Academy have agreed that fixed debts are to be repaid with their like, and it is not permissible to link them to the price level. So, whoever loaned a thousand pounds is only entitled to a thousand pounds, and a change in its purchasing power does not affect this, though some scholars have elaborated on cases of extreme depreciation in value.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
170614
Imported
Translation status
Source text, unreviewed
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