The following are answers to several questions related to the future Khilafah state and the transition of the current currency to the Gold and Silver Standard. 1. Question: Is it permissible in Islam for the Khilafah to partially back its currency during a transitional period on the justification (if it is so) that it does not have the capacity (in reserves) to maintain 100% convertibility. In terms of the US, this would mean that it could partially back (at around 20%) all of its currency at the current rate, without having to change that parity or endure the negative effects associated with this. This would grant it the stability it would need to expand its reserves (through various means) so that it can gradually move towards a 100% backed rate. Answer: For the state to issue a gold and silver based currency it will have to depend on the availability of these metals in its treasuries. In addition to this the state will also have to attain the available gold and silver f
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