to the level of prices.

Second: If inflation is expected, it is permissible to safeguard the contract by denominating the debt in something other than the currency likely to depreciate. The debt may be stipulated in:
(a) gold or silver;
(b) a fungible commodity;
(c) any other standardized commodity;
(d) a basket of currencies;
(e) another, more stable currency.

In all of the above cases, repayment must be made in the very form in which the debt was contracted, for the borrower is only liable for what he actually received.

These arrangements differ from the prohibited case in which the two parties set a deferred debt in one currency but require settlement in another—“linking it to that currency”—or in a currency basket. The Academy has already forbidden this in Resolution no. 75, section four.

Third: It is not permissible, according to Islamic law, to agree at the time of contracting to index deferred debts to any of the following:
(a) a unit of account;
(b) the cost-of-living index or any other index;
(c) gold or silver;
(d) the price of a specified commodity;
(e) the rate of growth of the gross national product;
(f) another currency;
(g) the interest rate;
(h) the average price level of any commodity.