Legal Status of Currency Note in Shariah: An Issue of Islamic Markets

Abstract

The financial Markets are run by the medium of exchange namely paper currency. The Muslims are bound to abide by Shariah in all spheres of life, hence Muslim scholars took under consideration the legal status of paper currency. Difference of opinion occurred among them and there are four opinions about currency. The author of the article has extended fifth opinion with arguments. The article has been written in analytical mode and all opinions have been discussed and analyzed. The article reveals that Muslim scholars normally establish their opinions on the apparent phenomenon and don’t consider the ideological background of issues that leads to declaring admissible or inadmissible on very poor basis. The article ends with some handsome suggestions regarding replacement of paper currency to some other medium of exchange. It has also been suggested that some United Muslim Currency should also be floated on basis Petrol resources or water resources rather attaching it with dollar.