Introduction
Coinage, or the concept of money, has a profound significance in Islamic history, finance, and economics. From the earliest forms of currency used during the Prophet Muhammad’s (PBUH) time to the principles of Shariah-compliant financial transactions today, exploring coinage in Islam unveils the depth and integrity of Islamic economic justice.
Comprehensive Definition
In the broadest terms, coinage refers to the creation and use of metal coins as a medium of exchange. In Islam, coinage encompasses not only the physical medium of currency but is deeply rooted in principles that ensure ethical conduct, fair transactions, and the prohibition of exploitative financial practices.
Etymology
The English term “coinage” derives from the Old French “coignier,” meaning “to mint, strike” and can be traced further back to Latin “cuneus,” referring to a wedge or die used for stamping coins.
Background and Historical Context
During the time of the Prophet Muhammad (PBUH), the principal currency used in Arabia was the Byzantine solidus (gold coin) and the Persian drachma (silver coin). Post the advent of Islam, especially with the formation of the first Umayyad Caliphate, the need to create a distinct Islamic coinage became imperative. The first Islamic coin was the gold dinar, appearing in 696 AD under Caliph Abd al-Malik.
Cultural Differences and Similarities
Many cultures have their unique forms of currency and economic systems. However, the similarity lies in the recognition that money is a central medium for trade and economic stability. Specific to Islamic culture, the principles centered around equitable distribution, prohibition of interest (riba), and ensuring asset-backed transactions distinguish it from western capitalist frameworks.
Synonyms
- Currency
- Legal Tender
- Coin
- Money
Antonyms
- Barter (exchange of goods without money)
- Debt (borrowed capital)
- Poverty (lack of financial resources)
Related Terms and Definitions
- Dinar (دينار): Historically, a gold coin used in the Islamic world.
- Dirham (درهم): A silver coin used historically and still referenced in modern currency.
- Riba (ربا): Interest or usury, which is prohibited in Islamic finance.
- Zakat (زكاة): A form of almsgiving treated in Islam as a religious obligation or tax.
Exciting Facts
- The term “Dinar” is derived from the Latin term “denarius,” indicating the cross-cultural influences of early Islamic currency.
- Modern Islamic finance adopts a stringent approach to ensure all monetary activities comply with Shariah law, promoting ethical finance.
- Islamic coin designs often avoided images of rulers, instead favoring Quranic inscriptions or geometric patterns, in line with Islamic artistic traditions.
Quotations from Notable Writers
- Muḥammad Asad: “Islamic economics is founded on the principle of social justice, aiming for a balanced society whereby wealth does not circurnicate solely among the rich.”
- Imam Ghazali: “Trust and trade together form the bedrock of Islamic commercial activities, ensuring fairness and mutual respect.”
Suggested Literature and Other Sources
- “Islam and the Economic Challenge” by Umer Chapra.
- “Introduction to Islamic Economics: Theory and Application” by Hossein Askari, Zamir Iqbal, and Abbas Mirakhor.
- “The History of Islamic Political Thought: From the Prophet to the Present” by Antony Black.
- “Islamic Finance: Principles and Practice” by Hans Visser.
- “Ethics and the Golden Rule in Islam” by Asma Afsaruddin (Journal article).
Quizzes
Inspirational Thought:
“As we delve into the evolution of coinage from historical dinars to contemporary finance, we uncover not merely a transaction medium but an ethical locus for societal harmony and justice.”
- Hassan Al-Muhammad
Published by: Islamic Finance Insights Publication Date: October 10, 2023
Happy reading and reflections!
