Fatwa ID: 03275

Answered by: Maulana Jamal Ahmed​

Question

Assalamualaikum

Paper Currency has no intrinsic value. Is it halal?

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful 

Answer:

Mufti Taqi Uthmani, after discussing the different opinions, prefers the opinion that paper currency has become customary money (thaman urfi). Fiqhi Maqalat, vol. 1,  pg. 15,  Mayman Islamic publishers.  

This means that it has value based on the custom of the people which is valid in Islam although it does not have intrinsic value. Therefore, paper currency will be halal and will be treated as real money.

Only Allah knows best.

Written by Maulana Jamal Ahmed

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham