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Constitution of the Caliphate State for Android

Constitution of the Caliphate State / Economic System

Article 167: The currency of the State is gold and silver

The Constitution of the Caliphate State, Article 167: The currency of the State is to be restricted to gold and silver, whether minted or not. No other form of currency for the State is permitted. The State can issue something as a substitute for gold or silver provided that the Bayt Al-Mal has the equivalent amount of gold and silver to cover the issued coinage. Thus, the State may issue coinage in its name from brass, bronze or paper notes and so on as long as it is covered completely by gold and silver.

When Islam decided the rules of selling and hiring, it did not specify what would be exchanged for the goods or service and benefit such that upon that basis that thing would become obligatory. Rather it left man to exchange using anything as long as there was mutual consent for that exchange, and so it is permitted to marry a woman upon teaching her sewing, and to buy a car in exchange for working in the factory for a month, and it is permitted to work for an individual for a specific amount of sugar. The Shari’ah left the issue of exchange open for people so that they could base it upon whatever they wanted, which is proven by the generality of the evidences for trade and hiring such as:

((وَأَحَلَّ اللَّهُ الْبَيْع))

And Allah has permitted trade(TMQ 2:275) – for anything and by anything, and the narration:

«أَعْطُوا الأَجِيرَ أَجْرَهُ قَبْلَ أَنْ يَجِفَّ عَرَقُهُ»

Give the worker his wages before his sweat dries.” (reported by Ibn Maja); in other words, that the worker should receive his salary when he finishes his work, whatever the nature of that wage. Additionally, these things that are used for exchange are not actions such that they would in origin be restricted (to the evidence) and so their permission would require an evidence, but rather they are things. The origin regarding things is that they are permitted as long as there is no evidence to prohibit them, and there is no evidence reported which prohibits using anything as an exchange, and so accordingly it is permitted to carry out Shari’ah transactions with them whether buying and selling, giving as a gift or exchanging with the exception of anything where there is a text prohibiting its exchange. Based upon this, exchanging goods for money, and money for goods is permitted without any restrictions, except for exchanging money with money because it has specific rules and so it is restricted by those rules. In the same manner, exchanging effort for money, and money for effort, is permitted without restriction unless the goods or service have been mentioned in a text as being forbidden. Accordingly, to exchange goods for a specific form of money, and in the same manner to exchange a service or effort for a specific unit of money, is also permitted without any restriction, whatever the unit of that money may be. So irrespective of whether that unit doesn’t have anything backing it, such as fiat currency, or if it was backed by a specific amount of gold , such as secured paper currency, or if the unit was backed by gold and silver to its value such as representative paper currency, all of them are considered to be allowed to trade with. Therefore, it is correct to exchange goods or services for any unit of money and it is permitted for the Muslim to sell for any currency and to buy with any currency and to hire with any currency and to be employed for any currency.

However, if the State wanted the lands that it ruled to adopt a specific unit of money, such that it implements the rules of the Shari’ah related to finance from the angle of it being wealth such as Zakah, exchange, interest and anything else, and the rules related to the individual who owned the wealth such as blood money, the minimum stolen amount that would be considered theft, and so on, then it does not have an open hand to use any specific monetary unit, but rather it is restricted to use only a specific type of money and no other. The Shari’ah specified the monetary unit, from a specific genus which the text mentioned, and this is gold and silver. So if the State wanted to issue a currency, it is restricted to the money being gold and silver and nothing else. The Shari’ah did not leave the State to issue any money it pleased, from any type it wanted, but rather it specified the monetary units which the State could make as a currency for itself if it wanted to issue a currency with specific monetary units; which are gold and silver alone. The evidence for this is that Islam connected to gold and silver with fixed rules, and without any change. So when blood money was specified, it was specified from a specific amount of gold, and when the cutting of the hand of the thief was obligated, the minimum amount that the punishment would be applied for was specified from gold; the Messenger صلى الله عليه وآله وسلم said in his message to the people of Yemen:

«وَأَنَّ فِي النَّفْسِ المُؤْمِنَةِ مِاْئَةٍ مِنَ الإِبِلِ، وَعَلَى أَهْلِ الْوَرَقِ أَلْفُ دِينَارٍ»

and for the believing soul (if killed) it is one hundred camels, and for the people of silver one thousand Dinars” (mentioned by Ibn Qudamah in Al-Mughni from what was reported from ‘Amru b. Hazim from the letter of the Messenger of Allah to the people of Yemen). And in the report in Al-Nisa’i regarding the letter of the Messenger of Allah صلى الله عليه وآله وسلم to the people of Yemen: “and upon the people of gold it is one thousand Dinars” in place of: “people of silver”. And he صلى الله عليه وآله وسلم said:

«لا تُقْطَعُ يَدُ السَّارِقِ إِلاَّ فِي رُبْعِ دِينَارٍ فَصَاعِدًا»

Do not cut (the hand) except for a quarter of a Dinar and more” (reported by Muslim from Aisha(ra)).

This defines specific rules with Dinars and Dirhams, and the weight of the Dinar measured by gold, and the Dirham by silver, which made them monetary units analogous to the value of objects and effort. This monetary unit is the currency and its basis. The fact that the Shari’ah textually connected gold and silver to the Shari’ah rules when these rules were related to currency is evidence that the currency can only be from gold and silver alone.

Additionally, when Allah (swt) obligated Zakah, He (swt) obligated it upon gold and silver alone, and specified the Nisab from gold and silver, and so the consideration that the Zakah upon money is by gold and silver specifies that the currency is gold and silver, and if there was a currency other than them then Zakah for money would have been obligatory upon it. Because there is no text for Zakah upon money except upon gold and silver, this indicates that there is no consideration for any other type of money. Also, the rules of currency exchange which were revealed regarding monetary transactions alone addressed gold and silver alone and all of the financial transactions mentioned in Islam are dealt with in gold and silver. And currency exchange is to sell money for money, either to sell one type of money with itself, or to sell it for another type of money, and by another expression currency exchange is to sell a currency for a currency. The Shari’ah specified currency exchange – which is a purely monetary transaction – with gold and silver alone, which is a clear evidence that the currency must be from gold and silver and nothing else. He صلى الله عليه وآله وسلم said:

«وَبِيعُوا الذَّهَبَ بِالْفِضَّةِ وَالْفِضَّةَ بِالذَّهَبِ كَيْفَ شِئْتُمْ»

Sell gold for silver as you please” (reported by Al-Bukhari from Abu Bakra). And Muslim reported similar to it through Ubada Bin Al-Samit. The Messenger صلى الله عليه وآله وسلم also said:

«الذَّهَبُ بِالْوَرِقِ رِباً إِلاَّ هَاءَ وَهَاءَ»

Gold for silver is interest (usury) unless it is exchanged hand to hand” (agreed upon from Umar).

Above that, the Messenger صلى الله عليه وآله وسلم specified gold and silver as money, and made them alone the measures of monetary value which the values of goods and efforts were measured against, and upon which basis transactions were carried out. The measures for this currency were the Awqiya, the Dirham, the Daniq, the Qirat, the Mithqal, and the Dinar. These were all well known and famous at the time of the Prophet صلى الله عليه وآله وسلم, and the people would transact with them. And it is confirmed that he صلى الله عليه وآله وسلم consented to them. All of the trade and marriages took place with gold and silver, as has been confirmed by several authentic narrations, and so the fact that the Messenger صلى الله عليه وآله وسلم made gold and silver the currency, and the fact that the Shari’ah linked some of the Shari’ah rules with them alone, and that Zakah upon money is limited to them, and currency exchange and financial transactions were limited to them, are all clear evidence that the money of Islam is only gold and silver and nothing else.

However, it is necessary to be clear that the fact that the Shari’ah specified the currency that the State can issue as being monetary units from gold and silver, does not mean that the State restricts the exchanges between the people in the lands which are ruled by this currency, rather it means that the Shari’ah rules which the Shari’ah specified the use of these specific monetary units cannot be carried out other than in accordance with this money. As for general exchanges, they remain permitted as brought by the Shari’ah. It is not permissible for the State to restrict them to a particular unit; in other words, it is not permissible to restrict them to its or any other currency, since this restriction would be the forbiddance of something permitted, which is not permitted for the State to do. However, if the State thought that permitting any other currency in the lands it had authority over would lead to damaging its currency, its finance or its economy, in other words, would lead to harm, then it would be permitted to prevent it in accordance with the principle: “The means to something forbidden is also forbidden. In the same manner, if it thought that a particular currency would lead to that harm, then it could prohibit that currency in accordance with the rule: “If one type of a permitted thing leads to harm then only that one is prohibited, and the thing remains permitted”. This is also applied to exporting the currency of the State, and importing and exporting foreign currency, in the same way that it is applied upon the transactions within the State.

Some articles of the Constitution

The Constitution of the Caliphate State

Article 108: Shura (consultation) and Mashwarah (deliberation)

Article 108: Shura (consultation) and Mashwarah (deliberation) is the taking of opinion in its absolute meaning, and it is not binding in legislation, definitions, and nor intellectual issues such as disclosing facts, nor technical and scientific issues; and it is binding when the Khalifah consults in any operational issue and the actions that do not require research and deep examination. more
The Constitution of the Caliphate State,

Article 29: Required from a country for a contracting pledge

Article 29: It is stipulated that the authority of the region or the country that gives the Caliph a contracting pledge is autonomous dependent upon the Muslims alone, and not upon any disbelieving state; besides the security of the Muslims in that country, both internally and externally, is by the security of Islam not the security of the disbelief. With respect to the pledge of obedience taken… more
The Constitution of the Caliphate State,

Article 126: The wealth belongs to Allah (swt)

Article 126: The wealth belongs to Allah (swt) alone, and He (swt) has made human beings the trustees of it. Through this general trust they have been given the right to ownership of wealth. Allah (swt) has permitted for the individual to possess the wealth; so through this specific permission, he managed to possess it practically. more
The Constitution of the Caliphate State

Article 22: Principles of the ruling system

Article 22: The ruling system is built upon four principles which are: Sovereignty is for the Shari’ah rather than fort the people The authority is for the Ummah To appoint a single Khalifah is an obligation upon the Muslims The Khalifah alone has the right to adopt Shari’ah rules, so he is the one who enacts the constitution and the rest of the laws more
The Constitution of the Caliphate State,

Article 154: Employees are equal, regardless of the employer

Article 154: Company employees and those employed by individuals have the same rights and duties as employees of the State. Everyone who works for a wage, irrespective of the nature of the work, is considered an employee. In matters of dispute between employers and employees over salary levels, the salary level is to be assessed on the basis of the market. If they disagree over something else,… more
The Constitution of the Caliphate State,

Article 178: Education is compulsory and free for all

Article 178: It is an obligation upon the State to teach every individual those matters that are necessary for the mainstream of life, male or female, in the primary and secondary levels of education. This must be provided free of charge to everyone, and the State should, to the best of its ability, provide the opportunity for everyone to continue higher education free of charge. more
The Constitution of the Caliphate State,

Article 84: The Muhtasib

Article 84: The Muhtasib is the judge who investigates all cases, in the absence of an individual litigation, involving the rights of the public that do not involve the Hudud (proscribed punishments) and criminal acts. more

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