The Kelantanese dinar is a currency issued by the Government of the Malaysian state of Kelantan, which purportedly is in conformance with the concept of the Islamic gold dinar. The Kelantanese dinar is available in the form of coins of several denominations. These coins were first struck in 2006 by Mariwasa Kraftangan of Kuala Kangsar, Perak, a local producer of souvenirs and replicas of objects of art and culture, and launched by the state of Kelantan on 20 September 2006. The Government of Kelantan had suggested that the coins had the status of legal tender, and the state-issued dinar sold out quickly, with many buyers seeing the gold dinar as a better choice than fiat money.
However, the federal Malaysian government in Kuala Lumpur denied that the Kelantanese dinar had a legal-tender status, stating that the buyers had been misled by the Kelantanese government. The only currency that is legal tender in Kelantan is the Malaysian ringgit. According to the Malaysian constitution, ninth schedule, list I sub 7.a, the states of Malaysia do not have the right to issue coins. In fact, the federal government had already declared publicly in 2006, in response to the plan announced by the Kelantanese government and before any of the coins were minted, that state governments could not issue their own currency.
The gold dinar has seen significant use in the country. The creator of the currency, Umar Vadillo, has launched an international campaign to bring the currency beyond the borders of Kelantan. Proponents of the currency describe it as being in accordance with the Quran and also the Sunna of the Prophet Muhammad.
The coins have a metallic composition of 22 carat gold, as required to be in conformance with the modern Islamic gold dinar. There are 3 denominations – 1/4, 1/2, and 1 dinar. Additionally, in 2007 a gold 2-dinar coin was struck to commemorate the birthday of the Sultan of Kelantan.
Kelantan's 2010 gold and silver coin issue
The denominations that have now been struck are as follows:
- Silver — 1 dirham, 2, 5, 10, and 20 dirhams.
- Gold — 1/2 and 1 dinar, 2, 5, and 8 dinars.
The obverses depict a monogram in Arabic within a decorative border.
The reverses of these pieces depicts the full Kelantanese coat-of-arms.
These coins are sold in Kelantan as of 12 August 2010, but the Malaysian ringgit remains the only legal tender.
- "Kelantan makes dinar and dirham legal tender". AsiaOne. 14 August 2010. Retrieved 22 April 2011.
- Zuhrin Azam Ahmad (4 September 2010). "Dinar sold out in Kelantan". The Star. Archived from the original on 6 November 2011. Retrieved 25 April 2011.
- "'Kelantan folk misled over dinar status'". New Straits Times. 23 April 2011. Retrieved 22 April 2011.[permanent dead link]
- Ian Mcintyre (22 May 2006). "Kelantan plans new currencies". The Star. Archived from the original on 17 October 2012. Retrieved 25 April 2011.
- Malaysia: Kelantan collects Zakat in Shariah money