Coinage (Money) - Understanding its Role and History in Islamic Context

Introduction

Coinage, or the system of money used in a civilization, plays a crucial role in the development and functioning of any society. In the context of Islam, coinage has significant historical, economic, and jurisprudential implications that have evolved over centuries.

Etymology

The term “coinage” comes from the Latin word “cuneus,” meaning “wedge,” which relates to the wedge-shaped tools used in the minting process. In Arabic, it is referred to as “نقود” (Nuqud), and in Turkish, as “madeni para”.

Historical Context

Pre-Islamic Era

Before the advent of Islam, the Arabian Peninsula used various forms of coinage that were imported from neighboring civilizations, such as the Byzantine Empire and the Sassanian Empire.

Early Islamic Period

With the emergence of Islam in the 7th century, there was a significant transformation in the monetary system. The Caliphate introduced its own coinage, which included gold dinars and silver dirhams. The first Islamic coins were minted during the reign of Caliph Abd al-Malik ibn Marwan (685-705 CE) and were inscribed with Quranic verses and devoid of any images, reflecting the Islamic aniconism.

Abbasid Era and Beyond

The Abbasid Caliphate saw further sophistication of the coinage system, including more intricate designs and ample use in trade and commerce, stretching from Spain to India.

Significance in Islamic Economics

Zakat

Coinage is vital for the calculation and payment of Zakat, one of the Five Pillars of Islam. Zakat is a mandatory almsgiving calculated based on an individual’s wealth, which includes coins and other forms of currency.

Trade and Commerce

Islamic coinage facilitated trade across the vast Islamic Empire and even with non-Muslim regions. The standardized coinage system eased transactions and promoted economic stability.

Islamic Jurisprudence

Islamic scholars, including those from the Hanafi, Maliki, Shafi’i, and Hanbali schools of thought, have extensively discussed issues related to coinage, such as the permissibility of currency exchange, the prohibition of usury (riba), and the authenticity of coins.

Notable Islamic Coins

1. Gold Dinar: Introduced by Abd al-Malik ibn Marwan, it became a standard for Islamic and global commerce.
2. Silver Dirham: Widely used across the Islamic world, often alongside the dinar.
3. Copper Fils: Used for smaller transactions and commonly circulated among the public.

Books for Further Studies

1. “Money in Islam: A Study in Islamic Political Economy” by Masudul Alam Choudhury - A comprehensive look at the role of money in Islam.
2. “Islamic Coins and Their Values” by Tim Wilkes - A valuable resource for understanding the historical context and value of Islamic coinage.
3. “Coins of the Islamic World” by Stephen Album - Offers a detailed catalog of Islamic coins from various periods and regions.

Takeaways

• Coinage has a deep-rooted historical background in Islamic civilization.
• The introduction of Islamic coinage marked a significant transformation in economic and political realms.
• Coinage plays a crucial role in Islamic economics, impacting practices such as Zakat.
• The study of Islamic coinage reveals insights into broader Islamic jurisprudence and economic principles.

Conclusion

The study of coinage in Islam not only highlights its historical importance but also underscores its lasting impact on Islamic economics and jurisprudence. The intricate relationship between money and religion in Islam is evident through complex legal rulings and economic practices, making coinage an essential area of study for those interested in Islamic history and finance.