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This Android application is Debt and Inflation in the Perspective of Fiqh Muamalah. In PDF format.

Author : Muhammad Abdul Wahab, Lc.

Addition Due to Inflation What is Riba?

But is it true that additions to debt repayments caused by inflation are usury, or is this something else that is permissible and not usury? How do the scholars view this phenomenon?

Tracing the opinions of the classical scholars from the four schools of thought on this matter is rather difficult because at the time they lived they did not use paper money as they do now. However, if examined further, it turns out that there were types of money that were used in the past, whose characteristics were almost similar to paper money. Among them is money.

Fulus are coins that are usually made of copper. At the beginning of its appearance, fulus was only used as secondary money or as a complement to gold and silver. In the beginning, money had a low value and was only used to buy cheap goods that did not reach the value of one dinar or dirham.

Then later the use of money as a medium of exchange developed in 784-791 H. The value of money even experienced an increase, where at first 1 dinar equaled 480 money, in 630 H the value of money increased drastically so that 1 dinar equaled 18 money.

The similarity in character between paper money and money is that both have extrinsic value that is greater than their intrinsic value. In addition, both of them also experienced significant fluctuations in value. So to find out how far the influence of banknote inflation on debts, we first explored how the scholars viewed the phenomenon of fluctuations in the exchange rate on money that was in effect at that time.


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