Modern gold dinar

From Wikipedia, the free encyclopedia
Jump to: navigation, search

The modern Islamic gold dinar (sometimes referred as Islamic dinar or Gold dinar) is a currency that aims to revive the historical gold dinar which was a leading coin of early Islam. They consist of minted gold coins, Dinar, and silver coins, Dirham.

Abdalqadir as-Sufi, founder of the Murabitun World Movement, is known to be a strong proponent of the idea for the gold dinar revival movement. Trinidadian scholar Imran Nazar Hosein has also been promoting the revival of Dinar usage, but has linked its use to Islamic eschatology.

Dinar history[edit]

Main article: Gold Dinar
Crusader coins of the Kingdom of Jerusalem. Left: Denier in European style with Holy Sepulchre. Middle: One of first Kingdom of Jerusalem gold coins, copying Islamic dinars[citation needed]. Right: Gold coin after 1250, with Christian symbols following Papal complaints.[citation needed]

According to Islamic law, the Islamic dinar is a coin of pure gold weighing 72 grains of average barley. Modern determinations of weight range from 4.44 grams to 4.5 grams of gold, with the silver Dirham being created to the weight ratio of 7:10, yielding coins from 3.11 to 3.15 grams of pure silver.

Umar Ibn al-Khattab established the known standard relationship between them based on their weights: "7 dinars must be equivalent (in weight) to 10 dirhams."[citation needed]

Value and denomination[edit]

Per the historical law slated above, one dinar is 4.44 grams of pure gold, while one dirham is 3.11 grams of pure silver. A smaller denomination, daniq, has 1/6th of dirham's weight. The value of each coin is according to their weight and the market value of the two metals. The coins may be minted at fraction or multiples of their weights and valued accordingly.

Adoption[edit]

Indonesia[edit]

The currency was introduced in Indonesia in the year 2000 by Islamic Mint Nusantara (IMN). In 2011 IMN reveal the mithqal correction both weight and purity and follow by minting the Dinar 4.44 gram or 1/7 troy ounce (9999) and Dirham 3.11 gram or 1/10 troy ounce (9999). IMN-World Islamic Standard introducing 21 coins denomination of dinar and dirham (9999) for the time ever in the world, see Maklumat Pecahan Baru Dinar-Dirham [3]

Malaysia[edit]

In 2002, the prime minister of Malaysia proposed a gold dinar standard for use in the Islamic world.[2]

Kelantan was the first state in the country to introduce the dinar in 2006, which was locally minted. In 2010, it issued new coins, including the dirham, minted in United Arab Emirates by World Islamic Mint.[3] On 25 August 2013 Kelantanese government collected and distributed zakat from people in Kelantanese dinars and dirhams in a public ceremony officiated by Chief Minister Dato Nik Aziz Nik Mat.[4]

The state of Perak followed suit, minting its own dinar and dirham, which was launched in 2011.[5]

Libya[edit]

The IMF estimates that the bank has nearly 144 tons of gold in its vaults. In the months leading up to the UN resolution that allowed the US and its allies to send troops into Libya, Muammar al-Gaddafi was openly advocating the creation of a new currency that would rival the United States dollar and the Euro. Gaddafi called upon African and Muslim nations to join an alliance that would make this new currency, the gold dinar, their primary form of money and foreign exchange. They would sell oil and other resources to the US and the rest of the world only for gold dinars. Along with the uprising in Libya, international news channels on August/September 2011 brought several stories about Muammar Gaddafi's introduction of golden dinar[6] within his "gold-for-oil plan" [7] to possibly trade Libya oil on international markets.[8]

Use[edit]

Most of the coins are issued privately and are not legal tender. In Malaysia, the state government of Kelantan allows their use in transactions while it is illegal according to federal law.

Common uses of the gold dinar include:

  1. Buying merchandise from outlets.
  2. Holding accounts, and making and receiving payments as with any other medium of exchange.
  3. Saving, as is done with any form of gold.
  4. Paying zakat and dower as established within Islamic Law.

See also[edit]

Notes[edit]

References[edit]

External links[edit]