Mufti Online — Madrasah Ta'leemuddeen

Is using paper currency In accordance with sharia and is it permissible?

Published as Using paper currency

· 13 Rajab 1445 AH1 min readEnglish

Question

Is using paper currency In accordance with sharia and is it permissible?

Hence the world trade currency is not based of any tangible asset such as gold or silver.

The federal reserve prints USD without any backing then using it to provide loans to poor countries in exchange for services and goods. It also gives Central Banks control over the economy and have control on how much is printed to who it is distributed to and is unjustly distributed.

They also use banking methods such as Riba and fractional banking which is haraam and is the backbone of their financial system.

Answer

Yes, now that paper currency has been globally accepted and recognised as a valid currency it is permissible.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/34526
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-34526

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