> I would like to ask you concerning the matter of paper money. I find it
> a difficult matter when if is considered from the point of view of our
> fiqh. It can be categorized as fulus or factionary currency if we look at
> it as it is now. Or as a debt if we look at it from an historical point of
> view ant its genesis. In both cases it creates serious problems as far as
> the rulings of Zakat or Riba are concerned. Most of the ulama I have asked
> have a tendency to treat paper money as if it is gold or silver therefore
> they say that Zakat should be paid from it and it is riba to lend it in
> order to get benefit. I have noticed that this is also your position. But
> the fact of being flus or a debt changes the fiqh ruling on it. There is a
> fatwa from Shaikh ?Illish al-Maliki (the Sheikh of the Malikis of al-Azhar
> in his time and, by the way, a implacable enemy of Sh. Muhammad Abduh) in
> his collection of fatwas al-Fath al-Ali al-Malik where he says that zakat
> should not be paid on paper money because it is fulus (factionary currency
> made of copper or other material other than gold and silver) and zakat is
> not paid on fulus in the Maliki madhhab.
>
> I do understand both positions but I would like to know if you do have
> more thoughts on this subjet.
The position we narrate is taken our teachers who feel that one should
try one's best to practice the five pillars of Islam even if some
essentials and preconditions cannot be fully met due to one's
uncontrollable circumstances.
This is also the position of Muhammad ibn Muhammad ibn `Abdullah ibn
al-Mubarak al-Fathi al-Marakishi al-Maliki al-Muwaqqat, a late scholar
of the last century who came up with this ruling after the French instated
paper currency in Morocco. He states in his Habl al-Matin:
fi mi'atay dirhamin shar`iyyatin aw `ishrina dinarin shar`iyyatin
fakthara aw ma yatanazzalu manzalatahuma min hadhihi al-awraqi
al-hadithah yajibu rub`u l-ushri fihima. wa ma zada `ala dhalika
wa in qalla fabihisabihi. wa yajuzu ikhraju dh-dhabi `an il-fiddati
wa l-fiddatu `an dh-dhahabi wa yajuzu ikhraju ma tatanazzalu
manzilatahuma `anhuma ya yu`tabaru fi dhalika sarfu z-zaman.
For every 200 dirhams (according to Shari`ah weight) or 20
dinars (according to Shari`ah weight) or *what is equivalent
in paper currency*, one forth of a tenth is due on them.
And it is permissible to pay gold for silver and silver for gold.
It is also permissible to pay what is equivalent [of paper currency]
for gold and silver. And one should regard in this matter what
is considered cash currency in one's time.
[HM: volume 1: page(s) 42-43: line(s) 23,1-3 :{explanation of
al-Murshid al-Mu`in, line 187 "`ishruna dinaran nisaban fi
dh-dhahab..."}]
And of course, you will find differences among the scholars
on this point. But, this seems to be the dominant position
of most of the scholars (e.g., Hanafi, Shafi`i, Maliki) present
today that teach legal rulings to the common man
