If a currency is borrowed and then changes before repayment
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Fatwa number ( 10423 )
Q: When a person borrows a sum of money, let us say (100 pounds), to be repaid after several years from the time of borrowing (100 pounds), is there any implicit riba (usury or interest) in this transaction? Because the purchasing power (market value) of the pound decreases over time.
A: It is obligatory for the borrower to pay back the pounds he borrowed at the time his owner requests them, and there is no effect from the change in purchasing power, whether it increased or decreased. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: When a person borrows a sum of money, let us say (100 pounds), to be repaid after several years from the time of borrowing (100 pounds), is there any implicit riba (usury or interest) in this transaction? Because the purchasing power (market value) of the pound decreases over time.
A: It is obligatory for the borrower to pay back the pounds he borrowed at the time his owner requests them, and there is no effect from the change in purchasing power, whether it increased or decreased. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.