3) This Interest will behave exactly in similar manner as it will behave in the
first place, although it will provide a compensation for the loss of value in
money but will be responsible as well for the further creation of Inflation,
the devaluation of money, and scarcity of money subsequently.
4) The first occurrence is once only, the rest are same as the Interest based
transactions, the only difference is that - here Interest is not used for profit
making but for the compensation.
5) If it is the only consideration to compensate the money owner for the loss
of value in his money at return, then it is achieved, but what about the
moral fiber and effects of Interest that this act of compensation will make.
6) If it is argued that no “profit” is made with this Interest, only compensation
was the motive, therefore it shall be justified. It will translate into a sense
that the use of Interest “not for making profits” is justified.
7) Making profit is not prohibited from Islamic point of view, but it is rather
prohibited with the use of Interest. Thus, why the compensation with the
use of Interest shall be considered justified?
In order to just compensate the loss of value in money of the owner; will it
be logical to say that what is prohibited is Riba not the kind of Interest that
is used for the compensation? The rationale for not classifying this kind of
Interest as Riba is the “value compensation” and not the scope of Interest
9) The loss of value in money is a result of Interest predominantly understood
and classified as Riba (interest, usury) which is prohibited. How a branch of
Interest (only created for the convenience of accounting), not having
different character than its head can be taken out of the prohibition?
0) I am not denying the right of demanding for the compensation of the loss of
value in money, but the Interest based solution to accomplish this.
The money is not corrupted by IBF, but it is.
IBF have no mechanism to adjust the loss of value in money
Serious issue of “how to compensate the loss of value”
The matter is unresolved.