Estimation of the Zakat Nisab for Paper Currency in Light of Inflation: An Applied Jurisprudential Study on the Libyan Context

Abstract

This study addresses the issue of determining the nisab (minimum threshold) for zakat on paper currency in light of inflation in Libya, through an analytical and applied jurisprudential study. The research begins by clarifying the nature of paper money and its function in the contemporary financial system, as it has effectively replaced gold and silver as a medium of exchange and a measure of value. The study further examines the juristic problem related to determining the nisab of paper currency in light of the continuous fluctuation in purchasing power, particularly in the Libyan context, which is characterized by high levels of inflation. The research adopts an inductive, analytical, and comparative methodology to present and discuss the opinions of contemporary jurists, while highlighting the impact of economic changes on the application of Islamic legal rulings to real-life contexts. The study concludes by giving preference to considering the lower of the two nisabs (gold or silver) in determining the zakat threshold, in order to achieve the objectives of Sharia, particularly the realization of social solidarity and the expansion of the circle of beneficiaries, while maintaining adherence to the relevant legal controls and regulations.