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Friday, July 4, 2014

Zakaath, - Dought&clear, - He owns Iraqi dinars; should he pay zakaah on them?




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I have one million Iraqi Dinars. Its exchange rate with foreign currency is zero. How shall I pay Zakah on this amount?.
Praise be to Allaah.
These bank notes come under the heading of “trade goods”, because they actually have some value in the market, even though they do not have any value in financial institutions.
The one who owns these bank notes should work out their value at the end of the zakaah year, and pay zakaah on them at a rate of 2.5%. This applies if their value reaches the nisaab (minimum threshold) or if he has other cash which completes the nisaab.
The nisaab is the equivalent of 595 grams of silver.
And Allaah knows best.



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