Knowing the History of Money in Islam
Money is the primary thing people are looking for today. Because with money, we can prosper ourselves, even at some points, it is also used for efforts to worship. No wonder if an individual is gathering to seek the happiness of the world even God willing, happiness hereafter.
But of course, above all, not infrequently the existence of money makes a person greedy and miserly. Of course, this trait is not justified. To get to know the history of money in Islam, see the following discussion.
Money in Islam has a history that is quite long. Here, we will discuss the historical sequence that underlies the change of currency to the present.
Money in the Future of Islam
Before Islam descended on Mecca, the people there knew the dinar and dirham as a means of transaction. This is based on its use which has been carried out by the Romans and Persians since long ago, and because of frequent buying and selling transactions between Arabs and Romans and Persians, Dinars, and Dirhams, it is also very commonly used. Even so, in fact, the Arabs also know Yemen money as a transaction tool, but because of its very limited use, most transactions use dinars and dirhams.
Transactions using dinars and dirhams continued even to the arrival of Islam to Mecca, but at that time the circulating dinars and dirhams did not belong to the Arabs themselves or did not have the form of carvings that symbolized that the dinar belonged to the Arabs. Also, the size in circulation varies aka the value is measured based on the weight and level.
The people who are in charge of measuring the dinar and dirham values already exist, and indeed they are responsible for identifying the weight and level also writing the origin of the issuance of the dinar and dirham.
Indeed, in fact at the time of the Prophet, he had not made changes to the prevailing currency, the article at that time the Messenger of Allah Sallahu Alayhi Wa Sallam and the companions were taking care of more important affairs namely preaching and fighting the infidels.
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Money Development during the Caliphate
During the reign of the Caliph, war and disputes among fellow Arabs began to gradually improve. After the death of the Prophet, many people at that time had embraced the teachings of Islam. The development in terms of politics and economics can also be considered by the government.
- Government of Abu Bakr As-Siddiq
At the time of the Caliph Abu Bakr, there were indeed no significant changes that occurred in the Arab currency. This was because his government was relatively short, and many cases had to be dealt with.
But the economic conditions during his reign rose, the article Abu Bakr as-Siddiq was firmly committed to fighting those who were reluctant to pay Zakat. Even so, the form of money has not changed and is still the same as the original.
- Umar Bin Khattab’s Government
The very significant development of money in Islam certainly occurred during the reign of Umar bin Khattab. At that time, many changes were made. But the changes that occur are more related to dirhams (silver money).
At first, the dirham was only in the form of coins made of bronze printed using Arabic script on both sides. Then the Caliph Umar Bin Khattab imposed several changes to the matter. Among others are:
- Printing more dirhams with different motives
- Add Islamic features to the dirham. By giving the words “Alhamdulillah”, “Muhammad Rasulullah”, “Laa ilaha illa Allah wahdahu”, and also the name of the caliph “Umar”
- The standard set of dirhams is: 1 dirham equal to 7/10 dinars, or equivalent to 2.97 gr with a standard dinar base of 4.25 grams of gold
The standard background set by the Caliph Umar bin Khattab is because there are so many different standards circulating in the community, so the decision to determine the standard must also be taken. The standard was also established with the scholar at that time and until now it has become an international standard which is syar’i.
Actually, during the reign of Umar Bin Khattab, there were also ideas to make other forms of money. Namely money made from animal skin. This is based on the fact that at that time economic development was very stable. But this raises some debate because the price of animal skin has fluctuated as the price of the animal changes in the market. Also, the material that is not solid is likely to be easily damaged.
- Uthman Bin Affan’s Government
Post-determination was made during the reign of Umar bin Khattab, almost no significant changes. During the reign of Uthman Bin Affan, there was the printing of new dinars and dirhams. Where without ignoring the provisions that have been set out in syar’i, it is narrated that the dinar circulating during that period had an Islamic motive on the one hand, and on the other hand there were original Persian motives (an amalgamation of Islamic elements and elements of the dinar and dirham).
- Government of Ali Bin Abi Talib
During the reign of Ali Bin Abi Talib, the economic condition was near perfect, so that no changes were made in managing the currency, maybe a slight change in motives in the printing of dinars and dirhams.
After this period, developments continued until the introduction of paper money. Of course, if you have ever watched the animated film The American Dream (via Youtube), you will understand what development will be. The development after the change of dinar and dirham to paper money triggered a usury crisis that is often not seen today.
After getting to know the history of money in Islam above, hopefully, this discussion can be useful and give us better knowledge than yesterday.