How is the zakat on money calculated in dollars if part of the hawl (one year) coincided with an old exchange rate for the pound (31 EGP), and the remaining part with a new exchange rate (50 EGP), and is it to be given based on the new dollar rate that was floated five days before the zakat is due?
is obligatory on anyone who owns foreign currency, such as dollars, if it reaches the , which is equivalent to 595 grams of silver. The amount of Zakat is one-quarter of a tenth (2.5%). There are two ways to pay Zakat:
1. Paying Zakat in dollars themselves, which is the original method. 2. Converting the value of the dollars to the local currency (e.g., Egyptian pounds) and paying Zakat with it. In this case, the exchange rate must be calculated based on the rate most beneficial to the poor. This is usually the parallel market rate if it is higher than the official rate, or the bank rate if it is higher, or one can pay in the original dollars to clear one's liability.
The exchange rate to be considered must be the rate at the time the hawl (the Zakat due date) is completed, not before.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy