Issuing Currency as a State Function in Islamic Jurisprudence

Abstract

The state is defined as a group of individuals living within a defined geographical area, engaging in various activities, and governed by a political system they agree upon. This system is responsible for managing state affairs and administration. The state serves its inhabitants by performing a set of functions known as state functions. Among these functions, security functions are considered sovereign, while financial and economic functions are fundamental state responsibilities. These include formulating general monetary policies, minting currency, regulating financial institutions, conducting financial transactions within the state, ensuring economic welfare for citizens, and often organizing economic activities. Consequently, the state is responsible for establishing numerous financial and economic institutions entrusted with such tasks.The significance of this topic lies in the fact that the primary aim of the state, through its various modern and traditional functions, is to achieve security, stability, and prosperity. Different schools of thought have attempted to reconcile the provision of public needs, which can only be achieved through strengthening authority.