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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Relationship between Riba and Currency Devaluation Compensation

Maysam Musai, Mohsen Merara, Fereshteh Barati

Open access

One of the challenging subjects in Islamic economics is necessary or unnecessary compensation for currency devaluation in exchanges (especially in loan). In this article, eight reasons have been presented for necessity of currency devaluation compensation. On the basis of finding of this article, to sum up, currency devaluation compensation is far from definition of usury and it should be compensated necessarily. Acceptance of this term in economy will lead to changes in economic exchanges of which the minimum result will be more suitable distribution of income and wealth and non acceptance of currency devaluation compensation in term exchanges will alter justice recommended in Islam.

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