The Islamic Gold Dinar Essay

5476 words - 22 pages

AbstractThe paper that I am writing is about the possible change in the nature of the current monetary system prevalent in many of the countries, including Muslim as well. The nature of the change that I will further elaborate in details will be in the form of the implementation of new monetary system, where gold will be playing the dominant role replacing the position currently held by paper money. The issue of adopting Islamic gold dinar system is one of the hottest and pertinent issues nowadays, because many developing countries, headed by majority of Muslim countries, are contemplating about the possible change to Islamic gold dinar system as one of the ways to shield their economies ...view middle of the document...

....................................................................................18Bibliography......................................................................................19The Islamic Gold DinarIntroductionOne of the most pertinent and relevant issues nowadays that are of major concern of many countries is to find the ways to build concrete and stable financial, monetary system that will be less vulnerable to speculative attacks, improve trade and increase the economic situation of a nation. There have been many discussions and talks about the return to the gold standard, which can make a significant change in the international monetary system of the world. The feasibility of implementation of such a system is reflected in the fact that gold constitutes the largest component in total reserves of the international monetary system after dollars. One of the main reasons that persuaded some countries to consider the possibility of the return to the golden standard is the fact that the present international monetary system can neither manage the interdependence of the currencies nor stabilizes prices. The dollar became the center of the system and the world started to depend on dollar rather than gold. This disorder, chaos in the system produced its negative effects in the form of financial crisis, huge debts, and all the negative consequences of the system fell on shoulders of developing countries. As the reaction to improper and inefficient functionality of the system, leaders of these countries began to consider the possibility of returning to the gold standard that will shield their economies from the future speculative attacks. So that initial step towards finding solutions to the existing problem was done by the prime minister of Malaysia Mahatir Mohammad after the financial crisis that heavily hit countries in the South East Asia. The plan was to start using the Islamic gold dinar aimed to prevent another currency crisis of the scale happened once in 1997-98. In addition, the implementation of new currency will reduce the dependency from US dollar, and lead to unity and cooperation among Muslim countries as the result of trade and economic cooperation. It will also lead to the establishment of a united Islamic market, as Euro market. Apart from the economic benefits, the gold dinar proposal also has a political dimension to it. Nowadays the entire monetary system is used as the direct tool for controlling and creating dependence of developing countries from it. This fact can be illustrated by bringing an example of International Monetary Fund, and other financial institutions which are established with the purpose of controlling and manipulating the policies of developing countries. Thus, all nations, Muslim or otherwise must consider a system like the Islamic gold dinar to protect their sovereignty. Therefore this move should not be delayed, because due to increase in capital mobility and financial liberalization, as a direct...

Other Essays Like The Islamic Gold Dinar

International Monetary System Essay

3692 words - 15 pages The International Monetary System in the 21st Century: Could Gold Make a Comeback? This case study gave us the explanation of how gold will intersect with the international monetary system in the next century. Since 1960s gold has been an important feature in monetary system, shown by monetary authorities who only held gold, the only commodity, as reserve. A substitute of gold is called Special Drawing Right (SDR), created by IMF in 1968

Islamic Finance Essay

2537 words - 11 pages obligations (due to lack of liquidity, bad loans or a sudden withdrawal of savings) causes other financial institutions to be unable to meet their financial obligations when due. Such a failure may cause damage to many other institutions and threatens the stability of financial markets Systemic risk Money supply Uncontrolled printing of paper money that is not backed by real assist/commodity (gold) Higher inflation  Causes of the U.S. subprime

Origin and Fate of the Empire of Mali

591 words - 3 pages land." The basic peasant farmer believed in a "spirit of the land" to whom he prayed so that he would get good crops. Economics The main currency in Mali was gold dust. This shows the enormous wealth of the country. There were many trade routes in Mali. The people who traveled these routes were the Dyula. The Dyula consisted of a group of Islamic people who followed the "Dyula-mansa," the company chief. The Dyula were the main

The Islamic Faith

2318 words - 10 pages streets of gold, and walls of jasper. Why would God be impressed with the works or rituals which man does? God's teachings are spiritual and man's work is physical. The short and simple answer to this question is that our works cannot get us into heaven. On the contrary Islam teaches that certain actions and rituals are needed before a person can gain entry into heaven.These myths and theories come from the sacred texts that the Islamic faith

Early Civilization Matrix

2526 words - 11 pages ortodoxia”. 680 y 681, en el III Concilio de Constantinopla se retornaron definitivamente a la ortodoxia. Disputa entre culto a las imágenes y los que se oponían. Patriarca Focio defendió el gobierno compartido entre iglesia y estado.Literatura se caracteriza por tres elementos: helenismo, cristianismo e influjo oriental. Entre el siglo VIII y el XI epopeya nacional Digenis AcritasIslamic 622 a.CMovimientos ideológicos que tratan de unir la

Aztec and Inca Empire

1596 words - 7 pages with no winner * It is believed that the losing team or some believe the winning team was sacrificed to the sun god at the end of the contest * Soldiers/explorers who came to the Americas in search of gold and glory * They were inspired by Columbus to come to the “New World” after his discovery * Hernan Cortes is the conquistador who first encountered the Aztec Empire * Cortes reached Mexico in 1519 in search

Arts Curotorial Assignment

1766 words - 8 pages image from each of the following periods/regions: 1. Ancient Egyptian Art (Gombrich Chapter 2) 2. Mesopotamian Art (Gombrich Chapter 2) 3. Greek Pottery or Architecture (Gombrich Chapter 3-4) 4. Greek Sculpture, 450. B.C.–100 A.D. (Gombrich Chapter 3-4) 5. Hellenistic or Roman Art, 100 B.C, - 300 A.D. (Gombrich Chapter 4-5) 6. Chinese Landscape Painting, before 1400 A.D. (Gombrich Chapter 7) 7. Islamic

Religion in Malaysia

4899 words - 20 pages trading links were established with China and India, and these had a major impact on the culture, language and social customs of the country. During this period, Malaysia's culture changed dramatically with the arrival of Indians. Indians initially went to the Malaysian peninsula in search of a mystical place known as the "Land of Gold." Although the places in Malaysia may not have been what they were looking for, they didn't leave, but

Chemistry - 1

552 words - 3 pages leather, rendering fat into soap, making glass, and making alloys like bronze. Democritus' atomist philosophy was later adopted by Epicurus (341–270 BCE). The genesis of chemistry can be traced to the widely observed phenomenon of burning that led to metallurgy—the art and science of processing ores to get metals (e.g. metallurgy in ancient India). The greed for gold led to the discovery of the process for its purification, even though the

Battle of Badr

1080 words - 5 pages legislation, it was between the stage of patience from harm things and difficulties, and patience on the torture and humiliation. The battle was the most significant among the Islamic battles. For the first time the group of the new faith were put into a grave test. They won the battle despite the number the pagan army while the Islamic Forces were still at the beginning of their developments, the faith of Islam could have come to an end. The

Speech on Corruption

1155 words - 5 pages , intelligent, hardworking and shrewd people; and dumping tried and tested corrupt politicians and strengthening the institutions. Exploiting our great strategic location and turning it into a gold mine and earning revenues for investment in education, skills development and health. Let’s see now what our “Father of the Nation”, Quaid-e-Azam Mohammad Ali Jinnah, said about running the affairs of our “Nation-State”: “Come forward as servants of

Related Papers

Hershey's Company Essay

526 words - 3 pages is of a different kind, trade freely’. In an another hadith by Muslim, the Prophet narrated, ‘Exchange between silver and gold is usury unless it is done simultaneously (offer and acceptance in the same time)’. While buying done on loan basis is prohibited, as hadith by Bukhari, the Prophet narrated, ‘the Prophet Salallahu `Alyhi Wassalam prohibits the selling of gold and silver through loans’ The above hadith explains about Islamic

Term Paper

1807 words - 8 pages . Dog 5. What is the currency of Austria? a. Euro b. Dinar c. Yen d. Schilling 6. In fable who sold the cows from five beans? a. Alice b. Peter c. Cinderella d. Jack 7. Which car company makes the Celica? a. Mitsubishi b. Mercedes Benz c. Honda d. Toyota 8. What does an alopecia sufferer lack? a. Nose b. fingers c. teeth d. hair 9. Which country had the Dauphin as a ruler? a. Germany b. China

Sultanate Of Delhi Essay

3491 words - 14 pages activities through his coinage and produced more gold coins than had his predecessors. The coins boasted fine calligraphy. He issued a number of fractional denominations. The large influx of gold from his plundering of south Indian campaign led him to increase coinage weights. He enlarged the gold dinar from 172 grains to 202 grains. He introduced a silver coin, the adlis, which was discontinued after seven years due to lack of popularity and

Art In Ancient Society Essay

1789 words - 8 pages of cement that allowed them to build larger and taller buildings than could the people that came before them. Roman roads, aqueducts and temples were found all across the empire and vast structures like Hadrian’s Wall, the Colosseum and Pantheon still remain today. Much of Islamic art is religions. Not all of it can defined to this one category, however. Islamic art includes the art of the rich and varied cultures of the many Islamic