QUESTION:
In Malawi, there’s a “bank official rate” and there’s a “black-market rate”. So the dollar for example, on the black-market will be around MWK1,800/1,900. There’ll be different rates for buying and selling. However, it’s illegal. Then there’s a bank rate which is around MWK1,115. So there’s a huge difference between the two. Usually in Malawi there are forex shortages. People also use the banks, but the banks have limits and sometimes they don’t have forex so people can’t do business, hence they resort to the black-market although it is illegal. If anyone is caught, they can be arrested and fined, and also imprisoned because one is not allowed to keep forex in Malawi.
So when it comes to calculating these indices, Zakaah, Nisaab, Mahr-e-Fatimi, Mahr-e-Azwaj, and for people to calculate their gold and silver, what exchange rate can we use, or should we use, to determine these indices? If we take the black-market rate the Zakaah can become too high, so we have a doubt. And if we take the bank rate, then in terms of paying Zakaah, the price of the gold can be lesser in terms of when its converted from dollars to Malawi Kwacha. I had asked Mufti Ebrahim Desai رحمه الله and he told me that you should use the bank rate, the official rate, the government rate. However, this question keeps coming up so what is the stance of the Darul Ifta?
ANSWER:
The market value of the USD (which is legally recognized) will be taken into consideration, and not the black-market rate. This is the rate accepted by all without any objection and used by all commercial banks. The black-market rate is not the true reflection of the currency. In conclusion, our view concurs with Mufti Ebrahim Saheb’s view.
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Mufti Mohammed Desai
Date:- 07 Jumadal Ukhra 1445 / 21 December 2023
