The nature and role of money: an islamic perspective

Abstract EN

We try through this study to expose the injudicious role of money in creating turbulences and turmoil in the economy, where the recent financial crisis presents a salient proof of that.

We attempt as well to explore its role from an Islamic perspective within the teachings and guidance of Quran and Sunnah, and the reflections of great Muslim jurisprudents.

A qualitative research has been applied with a literature review and an analysis of the available data.

The paper recommends revising the role of money and insists on reforming the banking and financial sector, and reviewing as well the financial intermediation that considers money as a tradable commodity (that may cause further crisis).

It has been recommended that the banking business may need to rely on profit/loss sharing point of view rather than on trading money as a commodity.