In Zakat calculations how does the Nisab work with modern currencies?

In a Nutshell - The Nisab by the gold standard is 3 ounces of gold (87.48 grammes) or its cash equivalent. This is approximately $5,443.84 for gold as of 2023, but will vary with the market value of gold. Silver: The Nisab by the silver standard is 21 ounces of silver (612.36 grammes) or its equivalent in cash. Introduction Zakat, one of the Five Pillars of Islam, is a mandatory act of charity that requires Muslims to donate a portion of their wealth to those in need. The concept of zakat is deeply rooted in Islam, and its calculation is based on the nisab, which is the minimum threshold of wealth required to be eligible for zakat. This article aims to provide a detailed understanding of the nisab in modern currency, its historical context, and the evidences and arguments supporting its calculation. The concept of zakat has been a subject of discussion and debate among scholars throughout Islamic history. The nisab has evolved over time, reflecting changes in the economic landscape and the value of currency. In the early Islamic period, the nisab was typically calculated in terms of gold or silver coins. However, with the advent of paper currency and the globalization of the economy, the nisab has been recalculated in modern currency. Evidences for Nisab Zakat Calculations The Quran obliges the zakat: "Take, [O, Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [Allah's blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing" [9:103]. The nisab is based on a hadith narrated by Ali bin Abi Talib (ra) where the Prophet (saw) said: إِذَا كَانَتْ لَكَ مِائَتَا دِرْهَمٍ ‏-وَحَالَ عَلَيْهَا اَلْحَوْلُ‏- فَفِيهَا خَمْسَةُ دَرَاهِمَ, وَلَيْسَ عَلَيْكَ شَيْءٌ حَتَّى يَكُونَ لَكَ عِشْرُونَ دِينَارًا, وَحَالَ عَلَيْهَا اَلْحَوْلُ, فَفِيهَا نِصْفُ دِينَارٍ, فَمَا زَادَ فَبِحِسَابِ ذَلِكَ "When you possess two hundred Dirhams at the end of the year five Dirhams are levied on them as Zakah. There is nothing upon you in gold, until it reaches twenty Dinars. When you possess twenty Dinars, at the end of the year, then there is half a Dinar levied on it. Any additional amount will be calculated in the same manner." (Sunan Abu Dawud 1573) Anas (ra) narrated Abu Bakr (ra) wrote to him when he sent him to Bahrain saying: "This is the obligatory charity that the Messenger of Allah (saw) enjoined upon the Muslims and that Allah enjoined upon His Messenger:… for silver, one quarter of one tenth." (Bukhari) Ibn Abi Shaybah narrated in al-Musnad (9966) with a good chain of transmission from Ali ibn Talib that he said: "Nothing is due on anything less than twenty dinars; for twenty dinars, half a dinar is due; for forty dinars, one dinar is due. For anything more than that, it is to be worked out." (Irwa al-Ghalil, 3/291) How Nisab works with modern Currencies The calculation of zakat in modern currency is based on the nisab, which is typically calculated as 3 ounces of gold (87.48 grammes) or its cash equivalent and by the silver standard is 21 ounces of silver (612.36 grammes) or its equivalent in cash. The nisab is recalculated periodically to reflect changes in the value of currency and the economic landscape. Conclusion The nisab is the minimum threshold of wealth required to be eligible for zakat, has evolved over time to reflect changes in the value of currency and the global economy. The Nisab using the gold standard is 3 ounces of gold (87.48 grammes) or its cash equivalent. This is approximately $5,443.84 for gold as of 2023, but will vary with the market value of gold. Silver: The Nisab by the silver standard is 21 ounces of silver (612.36 grammes) or its equivalent in cash.