Since almost all currencies used today are fiat currencies with no real intrinsic value, and since most fiat currency devalue, is it really interest when any money bearing this interest is itself devaluing. We can then see inflation of the costs or real goods in that currency, a kind of devaluation of said fiat currency, as a kind of interest charge?

This can be considered charging interest when you equate present and future values to hard currency (gold, silver). Fiat currency did not exist during our prophet's (pbuh) time. In fact it is a recent invention since the 19th century.

If we go by this premise then can we conclude that fiat currency itself should be considered haram, both to the governments and central banks that issue it, and for the ummah so they minimize the use of it for loans, savings, and investments?

  • "Haram" in what way? To own? To use? To create? According to who? And what are you looking for that can't already be found in the most basic of Google searches? – goldPseudo May 3 '17 at 17:39
  • @goldPseudo I have since made edits to help clarify the question. Simply, we are charged interest whether we choose to accept it or not on the money we have based on fiat currency – 0tyranny 0poverty May 4 '17 at 1:33
  • @Rebecca J. Stones Actually I would have preferred to comment on said questions instead of answering them but the bar for answering questions is lower than commenting on the questions. Can you please be specific on what of which answers you don't approve? – 0tyranny 0poverty May 4 '17 at 1:36
  • I'm responding to "do not yet have the privilege for answering", because answering ordinarily requires 1 reputation so I thought you encountered the answer ban, but it seems you're referring to commenting rather than answering. I'm not criticising your posts. – Rebecca J. Stones May 4 '17 at 1:40
  • From the point of view of central banks, inflation is equivalent to taking a fixed percentage of currency to everyone who owns some (you devaluate at the rate of inflation). It can be seen as a kind of tax regarding moral aspects (and every central bank in the world does it). It is very different from speculating on the currency or other goods values. – user5751924 May 4 '17 at 22:02

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.