Abstract
Background: Economic functions can not run without money but money remained an element of debate in all the times. Stability in economy is crucially associated with the nature and value fluctuation in money. Metallic money regarded as real form of money because of its content value. Dirham and dinar has not faced critical devaluation in comparison to modern paper currency. On the other side modern Fiat and Fiduciary currency are not fulfilling the requirement of stability because of their face value. Fluctuation in the value of money resulted to critical religious and financial complexities i.e. unfair social dealings, interest and devaluation. Clarification and fixation of the nature of currency is demanded since confusion and use of novel forms of money leads to injustice in Muamalat while all these are strictly prohibited in Islamic injunctions. Methods: Descriptive and analytical Research methodology will be adopted. What is the status, nature of currency and Shariah rulings regarding the currency in contemporary time and how it can be cured in the light of Maqasid al Shariah. Analyzing all these will be the intent of current research article.Conclusion and suggestions: Restoration of the dinar in comparison to paper content will be recommended since its stability is recognized. Historically metallic content was adapted as currency on the basis of its compatibility to most suitable money i.e. Portable, high commodity value, uniformity and finesse in production, divisibility with no loss in value, storable without deterioration and limited supply.Although its reinforcement primarily will be hard but over a course of time will be productive for financial system. Significantly research will help in construction of shariah based financial infrastructure
Shagufta Hafeez, Dr. Asia Rashid. (2021) Gold is a Suitable and Stable Money: An Analytical Study, AL-ILM Journal, Volume 5, Issue 1.
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