RESOLUTION
NO. 42(4/5)
CONCERNING CURRENCY RATE FLUCTUATION
Quote -The Council of the Islamic Fiqh Academy, holding
its Fifth Session, in Kuwait City (State of Kuwait), from 1st
to 6th Jummada al-Oula 1409 H (10 to
15 December 1988);
Having reviewed the
research papers presented by the members and experts on “Currency
rates fluctuation” and after having listened to the discussions
held on this issue;
Having taken cognizance of
resolution No. 2(9/3) adopted by the Council of the Academy at its
3rd session, in which it was agreed
that Bank notes, being legal currencies, possess all characteristics
of valuables, are in general governed by Shari’a provisions
applied to gold and silver, and namely rules relating to Riba
(usury), Zakat and Salam (sale by advance payment);
RESOLVES
It
is significant that a fixed debt is repaid in its own currency and
not by its counter value, because debts are settled in the same
currency. Thus it is not permitted to attach fixed debts,
whatever their source, to currency fluctuation.
Verily, Allah
is All-Knowing - Unquote
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