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?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
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.
Summarized from the full answer at Ftawy · imported
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