How does a person repay a loan after a period of time has passed and the purchasing power of the currency has changed?
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The Shaykh: Yes.
The questioner : The issue of the decline of the dinar has attracted the attention of many people, but very few have focused on this aspect from a legal perspective. The question is: if someone borrows a sum of money from another person, does he repay it according to its original value, or according to the increased number of dinars today?
The Shaykh : The question is clear, but it is incorrect, because when you say he repays it according to its original value, this is understood to mean its purchasing power, and that is not what you mean.
The questioner : What was its original value? How much was it worth previously?
The Shaykh : Do you mean the number, not the value?
The questioner : No, I mean the value, meaning the dinar...
The Shaykh : Then you are mistaken.
The questioner : What is the nature of the mistake?
The Shaykh : Value means purchasing power, because the answer is now clear: yes, he repays it according to the purchasing power at that time, not according to the number at that time. This is the answer you want.
The questioner : Our Shaykh, could you please provide some detail?
The Shaykh : The detail is known by nature, meaning it does not require much explanation, before this situation in which the dirham was affected.
The questioner : Our Shaykh, could you please give us an example? Let us take an example...
The Shaykh : Shall I give you the example? I borrowed 1,000 dinars from you five years ago, and now I want to repay you. Do I repay you 1,000 dinars or 5,000 dinars? That is the question.
This is the example. I have been speaking about this issue for a long time, before the dinar declined, that these paper currencies do not have intrinsic value.
The questioner : The issue of the decline of the dinar has attracted the attention of many people, but very few have focused on this aspect from a legal perspective. The question is: if someone borrows a sum of money from another person, does he repay it according to its original value, or according to the increased number of dinars today?
The Shaykh : The question is clear, but it is incorrect, because when you say he repays it according to its original value, this is understood to mean its purchasing power, and that is not what you mean.
The questioner : What was its original value? How much was it worth previously?
The Shaykh : Do you mean the number, not the value?
The questioner : No, I mean the value, meaning the dinar...
The Shaykh : Then you are mistaken.
The questioner : What is the nature of the mistake?
The Shaykh : Value means purchasing power, because the answer is now clear: yes, he repays it according to the purchasing power at that time, not according to the number at that time. This is the answer you want.
The questioner : Our Shaykh, could you please provide some detail?
The Shaykh : The detail is known by nature, meaning it does not require much explanation, before this situation in which the dirham was affected.
The questioner : Our Shaykh, could you please give us an example? Let us take an example...
The Shaykh : Shall I give you the example? I borrowed 1,000 dinars from you five years ago, and now I want to repay you. Do I repay you 1,000 dinars or 5,000 dinars? That is the question.
This is the example. I have been speaking about this issue for a long time, before the dinar declined, that these paper currencies do not have intrinsic value.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.