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The question

How do we respond to those who deem interest (riba) permissible in this era due to inflation, arguing that returning the same amount after a period represents a loss for the lender due to the decrease in purchasing power?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

None of the scholars have ever said that usury is permissible, as it is one of the destructive sins. As for inflation, the majority of scholars believe that the repayment of debts should be in kind, not in value, and that debts are to be settled with their equivalents. Therefore, it is not permissible to link debts to price levels. The lender is not a loser, for he is rewarded by Allah, and the change in currency value might even be in his favor.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
83506
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy