I keep my money in a
current account so that I may avoid interest. However, the funds do
depreciate due to inflation. Does Islam recognise inflation and how does it
compensate for devaluation and depreciation due to inflationary pressures?
Answers: Money in the form of
paper currency has originated in the last few centuries. The issue of
depreciation due to inflation has arisen because of the very nature of paper
currency. Prior to this, goods were bought and sold on the basis of real
commodities like gold and silver coins for example, and there was no ‘false’
depreciation. However, today, this change in situation certainly calls for
some corrective measures.