An Arabic term that denotes cash and cash equivalents. This refers to the monetary assets that are held by an Islamic bank on its balance sheet including cash in hand (local and foreign currency amounts), deposits with the central bank and other institutions, and which the Islamic bank can withdraw or have access to whenever it wishes (i.e., on demand) and without restrictions and without incurring transaction costs. In other words, cash comprises coins, banknotes and currency available. Cash equivalents are short-term, highly liquid assets that are readily convertible to known amounts of cash such demand deposits and short-term investments whose maturities at the date of acquisition were three months or less.

For the purposes of zakah calculation, cash and cash equivalents include, in addition to the above items, holdings of gold and silver in the form of currencies, bullion, etc.

Al-naqd wa ashbah al-naqd is also known, in Arabic, as al-naqd wa ma fi hukmehi.