What does a debtor do if the local currency is always in continuous decline?

The questioner : Here is a question regarding debt, and although it is late in the order, it is appropriate to mention it here. He says: In some countries, there is a permanent decline in the local currency. What is the solution regarding borrowing in it?

The Shaykh : What we see, and this has happened in many countries in the modern era, is that the debtor must put himself in the place of the creditor and remember the saying of the Prophet (peace and blessings be upon him) For example, when I came to this country more than ten years ago, I clearly remember that the Jordanian dinar was equal to ten or eleven Saudi riyals. Now it is exactly half. So if we assume that a person borrowed one hundred dinars from a Jordanian or a non-Jordanian, it does not matter, he borrowed one hundred dinars when the dinar had full value, equal to ten riyals, for example. Then the years passed and the value of the Jordanian dinars declined. It is not permissible for this debtor to say, "I borrowed one hundred from you, this is one hundred." Rather, he must pay him what is equal to the value of the one hundred dinars at that time. This is undoubtedly among the meanings of his saying (peace and blessings be upon him) or as he (peace and blessings be upon him) said. This hadith and its like open up for the Muslim debtor the opportunity to honor his creditor when he presents his debt to him by increasing the repayment, because this is not riba in any way, but it is the Sunnah of the Messenger (peace and blessings be upon him and his family). With the note that the increase in repayment is prescribed at the time of repayment, and not before that, as is known among the scholars. This is my answer to the incidental question you asked.

The questioner : Suppose, O Shaykh, suppose that currency was valued in gold, for example, or in another stable currency, and the debt was that the debtor would deliver to the creditor such and such amount of the stable currency, even though he only delivered to him that local currency. If this condition were placed, for example, at the time of the debt?

The Shaykh : I do not believe that there is a stable paper currency. So if it is conditioned that repayment be in gold, this would be safer for the future.