This article has been reproduced from Prophetic Economics The following are answers to several questions related to the future Dar Ul Islam state and the transition of the current currency to the Gold and Silver Standard. Question: Is it permissible in Islam for the Dar Ul Islam to partially back its currency during a transitional period on the justification (if it is so) that it does not have the capacity (in reserves) to maintain 100% convertibility. In terms of the US, this would mean that it could partially back (at around 20%) all of its currency at the current rate, without having to change that parity or endure the negative effects associated with this. This would grant it the stability it would need to expand its reserves (through various means) so that it can gradually move towards a 100% backed rate. Answer:  For the state to issue a gold and silver based currency it will have to depend on the availability of these metals in its treasuries. In addition to this the state will also have …

This is based on an article from Al-Waie Magazine, Issue 407, 4 Aug 2020 by Youseff Al-Sarisi. As the Muslim ummah heads towards revival and victory, practical research is required in relation to the financial structure of the Bait Al-Mal (State Treasury) and additional revenues that will supplement the traditional funds from fai’, kharaj, jizya, ‘ushur, khums and zakat. This is with the aim of avoiding the possibility of financial bankruptcy, if its resources do not meet the rising expenditure required in modern states especially with regards to military weapons, heavy industries and infrastructure projects. This is why serious thinking is required on how to provide additional resources for the state, so that it does not fall into the sea of ​​poverty and destitution, and therefore cannot fulfill its mission, nor play its role as a state that carries a message of guidance to other nations. Is there a new Shariah resource that we can find for the Bait Al-Mal which was not mentioned previously among the Shariah rulings related to the Bait Al Mal …

The Federal Shariat Court (FSC) of Pakistan announced on April 28th 2022 that the current interest-based banking system is against sharia, and directed the government to implement an interest (riba)-free banking system by December 2027.[1] In fact, the first petition for the abolition of the interest-based banking system was filed in the FSC on June 30, 1990 and it has taken 32 years for a final verdict to be issued![2] It is well-established in Islam that riba is against sharia because of the numerous clear-cut verses of the Holy Quran such as, “O believers! Fear Allah, and give up outstanding interest if you are ˹true˺ believers. If you do not, then beware of a war with Allah and His Messenger!”[3] and “But Allah has permitted trading and forbidden interest.”[4] While most Muslims support a ban on riba, very few understand the alternatives to the existing economic system of banking and monetary transactions. The alternatives that emerge focus on offering interest-free loans through complex financial products, where the recipient still pays more than the capital. Those …

BY ABU NAJAR ASH-SHAMI. REPRODUCED FROM KHILAFAH.COM فَلِلذَّكَرِ مِثۡلُ حَظِّ ٱلۡأُنثَيَيۡنِ “for the male, what is equal to the share of two females” [Surah an-Nisa’a 4:11] There are verses in the Book of Allah which the secularists and enemies of Islam are itching to abolish if they could. Malicious people always direct their arrows of slander and falsehood toward Islam through these verses, and the most prominent of these is the saying of Allah (swt), يُوصِيكُمُ ٱللَّهُ فِيٓ أَوۡلَٰدِكُمۡۖ لِلذَّكَرِ مِثۡلُ حَظِّ ٱلۡأُنثَيَيۡنِ “Allah instructs you concerning your children: for the male, what is equal to the share of two females.” [Surah an-Nisa’a 4:11]

BY FARUQ IBN QAYSR Introductory Remarks In his tract on monetary reform, John Maynard Keynes referred to gold as a barbarous relic, whose rigidity had fettered the world from economic freedom and prosperity. He spoke at a time when the Occident were suffering from macroeconomic anaemia and were yearning for a solution. In sheer desperation, fiat money became the drug that gave growth-addicts what they craved for in the short-run. However, years after its introduction, the fiat system has induced far more volatility than it sought to resolve. In truth, Keynes failed to realise that barbarity was a trait not of gold but of fiat, insofar as it has plagued the world with monetary anarchy. In fact, the very system he consigned to history has never been more relevant than it is today.