The Effect of the Attribute of Inflation in Determining the Specific Legal Cause and Its Application to Fatwas Prohibiting Organized Banking Tawarruq

Abstract

The Effect of the Attribute of Inflation in Determining the Specific Legal Cause and Its Application to Fatwas Prohibiting Organized Banking Tawarruq

ABSTRACT

This study examines, from an uṣūl al-fiqh perspective, the validity of using inflation as a legal attribute (waṣf) in realizing the specific ratio legis (taḥqīq al-manāṭ al-khāṣṣ), and its application in fatwas prohibiting organized banking tawarruq. It concludes that considering economists’ views is an uṣūlī necessity for accurately identifying the attributes of contemporary financial cases, and recommends that official iftāʾ institutions consult qualified experts to form a sound and comprehensive understanding of financial realities, while calling for further research to verify the manāṭ adopted in modern financial fatwas. The study further finds that inflation does not, in uṣūl al-fiqh terms, qualify as a valid attribute for prohibiting organized tawarruq or other contracts, and that the mujtahid must instead seek alternative, appropriate, legally recognized attributes.

Keywords: inflation; taḥqīq al-manāṭ al-khāṣṣ; Islamic finance; banking tawarruq.