Is Zakat Obligatory on All Currencies?

Yes, Zakat applies to all types of currency. 

Whether it is in cash, digital form, or foreign currency, it must be included in the Zakat calculation. 

Here’s how you can determine the amount due:

• Convert all currencies into your local currency using the current exchange rate.
• Add up the total amount to check if it exceeds the Nisab threshold (the minimum amount required for Zakat to be due).
• If your wealth remains above the Nisab for a full lunar year, you must pay 2.5% of the total as Zakat.
• Include all liquid assets, such as:
• Cash in hand and bank accounts
• Digital money and online balances
• Business savings and trade capital
• Foreign currencies in your possession
• Zakat is due because money is a growing asset, similar to gold and silver, making it subject to purification.

By fulfilling this duty, you not only purify your wealth but also contribute to social welfare, supporting those in need.

And Allah knows best!