MUSLIM MONEY

MASTER
“AL-MAQRIZI”
PRESENT BY:
ISMAALENA ISMAIL 0634428
NURULHUSNA ARIP 0635044
NOR KHAIRUNNISA’ 0638784
HASMIDA MOHD RASPI 0639046
HOW WAS HIS
LIFE ???
 HIS LIFE
• Ahmad bin Abd al-Qader bin Muhammad bin
Ibrahim bin Tamim al-Bali al-Abidi al-Hsini.
• Born in Cairo in 766AH/1364AD
• Died in (845AH/1441AD) on Thursday 26 of
Ramadhan.
• Buried in Friday in Hush al-Sufiah al-
Bibarsiah(Cairo).
• He studied Quran,Prophet Muhammad tradition
and other branches of islamic studies.
• Teach hadith in Muayyadiah School in cairo
• Serve the government of the mamluk under
Sultah Barkuk.
• Government officer in Diwan al-Insha
• Qadi of the Shaari Mazhab
• Imam of the Mesjid al-Hakim al-Fatimi.
• Muhtasib(Ombudsman)of Cairo.
 WHAT IS HE
ECONOMIC IDEAS ???
Al-Maqrizi Economic Ideas
• The economic ideas of Al-Maqrizi
-not only confined money and inflation alone, but
encompasses the analysis of economic crises and its
linkages to the market forces and the economic role
of the state.

• These ideas are found in his four monumental

works, namely:
1) Ighathat al-Ummah bi-kashf al-ghummah
2) Al-suluk li-Ma’rifat dawal al-Muluk.
3) Shothur al-‘ugood fi thiker al-Nuqud
4) Al-Mawa’iz wa-al-‘I’tbar bi-dhikr wa-la-Athar
• The economic thought of al-Maqrizi emerges from
the fact that he lived in a crucial period of Islamic
history, that is the Mamluk’s period.

• This period spanning over 250 years, can be divided

into two distinct period, the first ranging from 658
AH/1250 AD to 792 AH/1390 AD and the second
784 AH/1382 AD to 922 AH/1517 AD

• The second period of the Mamluk empire

witnessed changes in economic, social and political
life.

• During this time, hyperinflation occured

• the hyperinflation during the Mamluk dynasty is caused by
the monetary system, namely the use of fulus as money.

• al-Maqrizi also believe that inflation is also caused by non-

monetary factors such as monopoly and hoarding and rising
cost of production.

• Likewise,the Asian financial crisis in 1997, was partly caused

by inflationary pressure coming from over-borrowing and
over-spending. Inflation increases cost of production, which
in turn lowers profit. Declining profit also implies lower
company valuation, which reflected itself in lower share
prices of the troubled company.
 Money in Islamic History
(Ighatat al-Ummah bi kashf al-ghummah)

Pre-Islamic times

During Prophet pbuh times

use gold and
silver as
During Umar Al-Khattab times as caliph currency

During the Umayyad rule

During the end of Abbasid era – began debasement

of money
 Egyptians under Fatimid rule – used only gold as a
currency

Ayubi took power from Fatimi - he introduced silver

(dirham), keeping gold
in government treasury

Early period of Mamluk – dinar and dirham

as currency

Later period – began to use fulus (copper) as a currency.

WHY???
WHY COPPER COINS
WERE USED TO
REPLACE DINAR ???
 WHY COPPER COINS WERE USED TO
REPLACE DINAR ???

1. Scarcity of silver (dirham)

– International trade
– Used to make decorative, luxurious
household, palatial and utensils

2. Dinar & Dirham were in short supply

– Level of economic activity decline ( )
– Alleviate further decline - Govt. began to import large
quantity of copper (cheaper and abundant in supply)
 WHAT ARE THE
CONSEQUENCES OF
USING FULUS AS
CURRENCY ???
Consequences of using fulus as currency
Prices

1st stage (801 – 805 H),

- Price but not sharply

2nd stage (806 – 814 H)

- economic struck by hyperinflation, and widespread of poverty.
- inflation become > worse, River Nile failed to reach plentitude
(a full supply)

3rd stage
- reintroduction of dirham by Sultan Muayyad who followed
money reform proposed by Al-Maqrizi
 WHAT ARE AL-
MAQRIZI’S MONETARY
REFORM ???
 Al-Maqrizi’s Monetary Reform

• blamed and critized the government

• failed to uphold their responsibilities
• mismanagement in monetary and failure to
maintain economic stability
• this method kills people as they have to suffer
high price of commodities.
 First proposal
• using only gold and silver
• He recommended that all payment made in
trading (al-bay’) and services (wages) must be
made using only gold and silver
• For him, many other metal is unsuitable as a
currency
 Second proposal
• Forbid the debasement of money
- Use silver dirham to pay wages as well as prices of
goods and services
• To guarantee the welfare of the people from the
abusing power of government, he stated
“The price of 100 dirham of pure and unadultered
silver is 6 mithqals of gold, to which is added ¼ dinar at
current prices to be paid to the mint as a fee to cover
the price of copper, the taxes to sultan, cost of
firewood, the wages of workers and the like”
 Third proposal
• Restricted the use of fulus
• He stressed on how much 1 mithqal should be
• He stated
“ one mithqal of gold will be exchanged for
24 silver dirham coins. 24 dirham cions is
equivalent to a weight of 140 dirhams in
copper coins (fulus)
• Imam al-Maqrizi was so much confident that
by forbidding the debasement of money and
changed with the using of gold and silver and
the welfare of people is guaranteed.
• He is very much concern about the welfare of
his people
• He stated in Khitat,
“the price of goods under gold and siver
increases slightly but under fulus, price of
goods increase rapidly”
• Therefore, gold and silver is easier and
comfort.
THANK YOU