Paper Currency
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The second question of Fatwa No. ( 6427 )
Q2: What is the ruling on the zakah of money? Since the amounts we have are in paper currency, i.e., notes as written at the top of each
denomination, should we pay zakah considering them as current currency, or convert them to gold or silver and then pay zakah according to their market prices in accordance with the rulings of the Shari'ah?
A2: If the situation is as you described, it is obligatory for you to pay out one-quarter of one-tenth of the paper currency you possess, in paper currency, whether its value is in gold or silver, provided that what you possess reaches the nisab, which is the equivalent of one hundred and forty mithqals of silver or twenty mithqals of gold, and a lunar year has passed over it. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q2: What is the ruling on the zakah of money? Since the amounts we have are in paper currency, i.e., notes as written at the top of each
denomination, should we pay zakah considering them as current currency, or convert them to gold or silver and then pay zakah according to their market prices in accordance with the rulings of the Shari'ah?
A2: If the situation is as you described, it is obligatory for you to pay out one-quarter of one-tenth of the paper currency you possess, in paper currency, whether its value is in gold or silver, provided that what you possess reaches the nisab, which is the equivalent of one hundred and forty mithqals of silver or twenty mithqals of gold, and a lunar year has passed over it. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.