Prohibition of Riba and its rationale : what is Riba ? does it relate to inflation ?

Fatawa Question

Assalamu Alaikum Wa Rahmatullah Wa Barakatuh. Bismillah Arrahman Arrahim. As far as I understand, Riba or usury is forbidden, except in the cases you mentioned several items when talking about the specific Fatwa of the European Council. But what does usury mean really ? If tomorrow I put some money on an Islamic bank account, what should I get when I need it in 12 months. Is it allowed to take into account the fact that money value changes with time (to be linked with the purchasing power), would a compensation in cash be considered as Riba and though forbidden ? Jazakoumoullah Khairan

Fatwa

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Publication Date

2003-02-24

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Inflation(Finance)
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-725673

• APA
• MLA
• AMA