Modern gold dinar

The modern Islamic gold dinar (sometimes referred as Islamic dinar or Gold dinar) is a projected bullion gold coin, so far not issued as official currency by any national state. It aims to revive the historical gold dinar which was a leading coin of early Islam. The currency might consist of minted gold coins (dinars) or of silver coins (dirhams).

Dinar historyEdit

According to Islamic law, the Islamic dinar is a coin of pure gold weighing 72 grains of average barley. Modern determinations of weight for the "full solidus" weigh 4.44 grams at the time of Heraclius and a "light solidus" equivalent to the weight of the mithqal weighing 4.25 grams. With the silver Dirham being created to the weight ratio of 7:10, yielded coins of 2.975 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.

Value and denominationEdit

 
Dinar issued during the reign of the Fatimid emir Al-Mu'izz li-Din Allah in Mansuriyah in 344 AH (955 AD)
 
Dinar of the Mamluq sultan Baybars (658–676 AH = 1260–1277 AD)

Per the historical law stated above, one dinar is 4.25 grams of pure gold, and a smaller denomination, the daniq, one sixth of that. Again from the law above, the dirham is 2.975 grams of pure silver. The value of each coin is according to their weight and the market value of the two metals. Coins may be minted at fractions or multiples of these weights and valued accordingly.

In practice coins were historically minted in either 24 karat "pure gold" although some contemporary coins have been minted in 22k for greater durability. In either case the weight of the gold content will be as per law.[citation needed]

AdoptionEdit

IndonesiaEdit

In Indonesia, while there is no official national coin, a number of mints are producing their own gold dinars, including that launched in 2000 by the Islamic Mint Nusantara [id] (IMN).[2] and Logam Mulia.[3]

LibyaEdit

The gold dinar proposal by Libya's former leader Gaddafi was considered as a reason for the Petrodollar warfare against Gaddafi.[4][5][6]

MalaysiaEdit

In 2002, the prime minister of Malaysia proposed a gold dinar standard for use in the Islamic world.[7]

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 the United Arab Emirates by the World Islamic Mint.[8] The state of Perak followed suit, minting its own dinar and dirham, which was launched in 2011.[9]

Other groupsEdit

Abdalqadir as-Sufi, founder of the Murabitun World Movement, was once a strong proponent of the idea for the gold dinar revival movement, but in February 2014 he completely distanced himself from it, saying, "So, I now dis-associate myself from all activity involving the Islamic gold dinar and silver dirham".[10] Trinidadian scholar Imran Nazar Hosein has also been promoting the revival of Dinar usage, but has linked its use to Islamic eschatology.

UseEdit

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.[citation needed]

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 mahr as established within Islamic Law.

See alsoEdit

NotesEdit

  1. ^ Ibn Khaldun, The Muqaddimah, ch. 3 pt. 34
  2. ^ "Islamic Mint Nusantara Established in year 2000". Retrieved 28 May 2019.
  3. ^ "Koin Dinar dan Dirham (in Indonesian)". Retrieved 28 May 2019.
  4. ^ David Swanson (April 21, 2011). "Libya: another neocon war". The Guardian. Retrieved November 8, 2019.
  5. ^ Avi Asher-Schapiro (January 12, 2016). "Libyan Oil, Gold, and Qaddafi: The Strange Email Sidney Blumenthal Sent Hillary Clinton In 2011". Vice Media. Retrieved November 8, 2019.
  6. ^ Alex Newman (November 11, 2011). "Gadhafi's Gold-money Plan Would Have Devastated Dollar". The New American. Retrieved November 8, 2019.
  7. ^ "Starkers". The Economist. Retrieved 27 December 2015.
  8. ^ The Malaysian Insider, Kelantan launches gold dinar, August 12th 2010."Kelantan launches gold dinar". Archived from the original on 2010-08-17. Retrieved 2011-09-05.
  9. ^ New Strait Times, Silver state launches dinar, dirham coins, March 1st 2011."Silver state launches dinar, dirham coins". Archived from the original on 2011-03-02. Retrieved 2011-09-05.
  10. ^ "THE ISLAMIC DINAR – A WAY-STAGE PASSED" Shaykh Dr. Abdalqadir as-Sufi

ReferencesEdit

External linksEdit