What is the nisab of paper currency according to the valuation of silver?
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Question:
The first question states: Some researchers have concluded that the nisab for paper currency is five hundred riyals, based on the valuation of silver. What is your opinion on this? I hope you will clarify this with evidence.
And is the valuation of fifty-six riyals based on the weight valuation, or is it something else?
And is one to resort to paper currency?
Answer:
In the name of Allah, the Most Gracious, the Most Merciful. May Allah send prayers and peace upon the Messenger of Allah, and upon his family and his Companions, and whoever follows his guidance.
As for what follows: The scholars have stated that the nisab of silver is one hundred and forty mithqals. In the time of the Prophet (peace and blessings be upon him), it was two hundred dirhams, so it was standardized to one hundred and forty mithqals. By standardizing the Saudi silver dirham, it became two and a half mithqals, and thus the nisab became fifty-six Saudi riyals of silver, which is one hundred and forty mithqals by weight. Therefore, any currency—such as the Saudi riyal, the dollar, the British pound, the Egyptian pound, or others—that corresponds to this amount, meaning what equals fifty-six riyals of silver in value, is the nisab.
It is possible to say that fifty-six of the paper currency that serves as the substitute for the Saudi riyal constitutes the nisab with regard to the Saudi dirham, because it has taken its place.
It is known that the first nisab is a small matter, because most people have more than the nisab. Those who are subject to zakah have more than the nisab, and this is the minimum amount. The minimum amount for which zakah is obligatory is fifty-six riyals that have been possessed for a lunar year, whether in silver or in paper currency or other trade goods of equivalent value. This is the principle and foundation in this matter. It is not confirmed by this amount alone, because the value varies: the Saudi silver dirham may be worth five... of paper currency one day, and it may equal ten of paper currency, and it may equal less or more. So if we take fifty-six of the silver dirham as the basis—as is well known—then what is established from the side of value from these other currencies is the nisab. However, if we take fifty-six of the paper riyal as the primary nisab like silver, because it has taken its place, that is not far-fetched, and it does not require looking into the value.
But looking into the value is the primary principle, because gold and silver are two great foundations in zakah. Gold is twenty mithqals, and silver is one hundred and forty mithqals. So whatever corresponds to this amount of goods prepared for sale or of currencies, it becomes the nisab. Whatever equals one hundred and forty mithqals of silver, and whatever equals twenty mithqals of gold in value, from whatever it may be—paper or otherwise—it is the nisab.
The first question states: Some researchers have concluded that the nisab for paper currency is five hundred riyals, based on the valuation of silver. What is your opinion on this? I hope you will clarify this with evidence.
And is the valuation of fifty-six riyals based on the weight valuation, or is it something else?
And is one to resort to paper currency?
Answer:
In the name of Allah, the Most Gracious, the Most Merciful. May Allah send prayers and peace upon the Messenger of Allah, and upon his family and his Companions, and whoever follows his guidance.
As for what follows: The scholars have stated that the nisab of silver is one hundred and forty mithqals. In the time of the Prophet (peace and blessings be upon him), it was two hundred dirhams, so it was standardized to one hundred and forty mithqals. By standardizing the Saudi silver dirham, it became two and a half mithqals, and thus the nisab became fifty-six Saudi riyals of silver, which is one hundred and forty mithqals by weight. Therefore, any currency—such as the Saudi riyal, the dollar, the British pound, the Egyptian pound, or others—that corresponds to this amount, meaning what equals fifty-six riyals of silver in value, is the nisab.
It is possible to say that fifty-six of the paper currency that serves as the substitute for the Saudi riyal constitutes the nisab with regard to the Saudi dirham, because it has taken its place.
It is known that the first nisab is a small matter, because most people have more than the nisab. Those who are subject to zakah have more than the nisab, and this is the minimum amount. The minimum amount for which zakah is obligatory is fifty-six riyals that have been possessed for a lunar year, whether in silver or in paper currency or other trade goods of equivalent value. This is the principle and foundation in this matter. It is not confirmed by this amount alone, because the value varies: the Saudi silver dirham may be worth five... of paper currency one day, and it may equal ten of paper currency, and it may equal less or more. So if we take fifty-six of the silver dirham as the basis—as is well known—then what is established from the side of value from these other currencies is the nisab. However, if we take fifty-six of the paper riyal as the primary nisab like silver, because it has taken its place, that is not far-fetched, and it does not require looking into the value.
But looking into the value is the primary principle, because gold and silver are two great foundations in zakah. Gold is twenty mithqals, and silver is one hundred and forty mithqals. So whatever corresponds to this amount of goods prepared for sale or of currencies, it becomes the nisab. Whatever equals one hundred and forty mithqals of silver, and whatever equals twenty mithqals of gold in value, from whatever it may be—paper or otherwise—it is the nisab.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.