Zakat on Foreign Currency Held

Short answer: Foreign currency is treated as cash wealth subject to zakat. If the total value reaches the nisab (equivalent to 85g of gold or 595g of silver) and you have possessed it for one complete lunar year, you must pay 2.5% of its value. You may pay zakat in the same currency or its equivalent in local currency, as paying the value is permissible. Details: Foreign currency, like gold and silver, is a medium of exchange and store of value, and therefore falls under the general obligation of zakat on wealth. The Qur'an and authentic hadith establish zakat on all forms of property that can grow or be traded. The nisab is based on gold or silver because these are the standards used in the prophetic injunctions. If your foreign currency holdings fluctuate, you evaluate them at the end of the lunar year and pay 2.5% of the market value on the entire amount, provided it exceeds the nisab. Evidence: 1. Sahih al-Bukhari 1454 (P3) confirms that the Prophet (ﷺ) made zakat obligatory on every Muslim, implying all wealth above the nisab is subject to zakat. 2. Sahih al-Bukhari 1448 (P6) shows that zakat may be paid in goods of equivalent value (cloth instead of grain), indicating that paying the monetary equivalent is acceptable. 3. Sahih al-Bukhari 1466 (P7) reports the Prophet (ﷺ) ordering women to give charity from their ornaments, which are non-monetary but valuable, analogically supporting zakat on cash savings. 4. Surah Ar-Rum 30:39 (P12) emphasises the importance of zakat, linking it to seeking Allah's pleasure and true increase. Disclaimer: This is a general ruling based on the provided texts. For complex personal situations (e.g., multi-currency portfolios, debt, or non-standard nisab calculations), consult a knowledgeable scholar.