Ma`rifat Eqtesadi

Internal money creation, which is the most important function of commercial banks, accounts for a large amount of liquidity. The inappropriate performance of banks in this field and the lack of close supervision by the Central Bank make internal money creation a main cause of creating liquidity and inflation. Providing reserves for internal money creation through the Central Bank's resources is the worst way for commercial banks to create money. Now large amounts of money are withdrawn from the Central Bank's resources regardless of religious concerns. Using an analytical-ijtihad method, this article analyzes and examines the jurisprudential issue of money creation from nothing. In this context, the question arises as to whether the creation of money from nothing, i.e creating money by commercial banks and securing its reserves by the central bank’s resources, faces jurisprudential and religious restrictions. Based on the research findings, the creation of money does not comply with jurisprudential rules. The incompatibility of the creation of money from nothing with jurisprudential principles can be documented with regard to rules such as the rule of unjust possession and the rule of not disturbing the system.