QUESTION:
May I please have information on “real value” from the Islamic point of view?
ANSWER:
In economics, the nominal value of something is its current price. The real value of something, however, is its relative price over time. Both can be used to talk about the value of not only money, but also your wages, share prices and other things that have financial value. [Extracted from the internet].
The nominal value of any economic statistic is measured in terms of actual prices that exist at the time. The real value refers to the same statistic after it has been adjusted for inflation.
Real value holds no weight in terms of Shariah. In a sale the actual selling price is taken into consideration. As long as both the transactors are happy, the sale will be valid. It doesn’t really matter as to how the price was reached. If one used the formulae of real value in reaching a selling price, then it is in order, or if any other formulate was used, then too it is acceptable. The same is applicable to salaries for employees. The salary agreed upon between the employee and employer will be applicable, irrespective of how both parties reached the stipulated salary. It is not necessary that the employer stipulates the salary according to the real value or the nominal value. It’s a matter of what both parties agree upon. In conclusion, real value and nominal value don’t really play a role in Shari’ee transactions. We hope that our explanation answers your question.
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Maulana Ahmed Saeed
Date:- 09 Rabi-ul-Aakhir 1445 / 25 October 2023
CHECKED AND APPROVED BY:
Mufti Mohammed Desai Saheb
