Thierry. Posted January 4, 2008 Islamic dinar and dirham The Islamic gold dinar (sometimes referred as Islamic dinar or Gold dinar) is a bullion gold coin made from 4.25 grams of 22-carat (k) gold with historical Islamic significance. Gold dinar may also refer to various historic gold coins denominated in dinars. Conversion rate The Islamic gold dinar conversion rate to other currencies is based on gold spot price. International gold spot price is published in troy ounce of 24k gold, while gold dinar is 22k gold measured in grams. Because one kilogram is about 32.15 troy ounce, the International gold spot price is about 7.98 times of gold dinar conversion rate. weight of coin (grams) × purity of coin × troy ounces per kilogram = fraction of spot price per coin For example, if today gold spot price is €438.90 per ounce, then one islamic gold dinar is about €55 (438.90 divided by 7.98). The current gold dinar was a theoretical coin in the Islamic world until September of 2006. =(31.1034768/1)/((4.25/1)*(22/24)) = 7.98 €438.90 per ounce/7.98 = €54.97 Per one Gold Dinar (4.25 Grams & 22k Gold) In USD =(31.1034768/1)/((4.25/1)*(22/24)) = 7.98 History of recent gold dinar prices based on gold spot market Dinar history According to Islamic law, the Islamic dinar is a specific weight of 22k gold (91.7%) equivalent to 4.25 grams. The Islamic dirham is a specific weight of pure silver equivalent to 3.0 grams. Umar Ibn al-Khattab established the known standard relationship between them based on their weights: "7 dinars must be equivalent to 10 dirhams." “ The Revelation undertook to mention them and attached many judgements to them, for example zakat, marriage, and hudud, etc., therefore within the Revelation they have to have a reality and specific measure for assessment of zakat, etc. upon which its judgements may be based rather than on the non-shari'i other coins. Know that there is consensus [ijma] since the beginning of Islam and the age of the Companions and the Followers that the dirham of the shari'ah is that of which ten weigh seven mithqals weight of the dinar of gold... The weight of a mithqal of gold is seventy-two grains of barley, so that the dirham which is seven-tenths of it is fifty and two-fifths grains. All these measurements are firmly established by consensus. ” —Ibn Khaldun, Al-Muqaddimah Modern history As a consequence of currency crisis in Asia, in first of 1997, then Prime Minister of Malaysia Mahathir bin Mohamad proposed introduction of Islamic gold dinar as currency for international trade in the Muslim world. It was supposed to suppress the too overly traded American dollar and ensure that dollar's instability does not affect international trade because Islamic gold dinar was to be tied to price of gold and thus provide stable value of the currency. Mahathir announced that Malaysia was to start using the dinar in mid-2003, but when in 2003 Abdullah Ahmad Badawi replaced him as Prime Minister of Malaysia, this idea was halted. Kelantanese gold dinar, obverse and reverse On the 20 September 2006, Kelantan became the first state to launch gold dinar coins. It features the Kelantanese state crest, the date of production, as well as the weight and purity of the gold used on its face. The DEK is similar to the original dinar in weight and purity of gold used. The coins can be bought and sold at the Kelantan Corporation Bhd (Perbadanan Kelantan Bhd) and all eight Ar-Rahn Islamic pawnshops in the state. A gold dinar and a silver dirham In Malaysia, under the IGD Practice Sdn. Bhd., they established wakala (Islamic banking agencies) in a few states in Malaysia. [1] Common uses of the gold dinar include: 1. Saving them, because they are wealth in themselves. 2. Paying zakat and dowry as established within Islamic Law. 3. Buying merchandise from outlets. 4. Holding accounts, and making and receiving payments as with any other medium of exchange. [2] [edit] The IGD Exchange Payment System IGD Exchange is the name of a world-wide internet base electronic payment and exchange system that uses the Islamic gold dinar and dirham in correspondence with Islamic banking agencies. The primary use of the Islamic Dinar and Dirham is as a buffer instrument for international trading, namely Bpa and Mpa. IGD Exchange transaction are executed directly between the two parties involved without requiring third-party intermediaries. Quote Share this post Link to post Share on other sites
Thierry. Posted January 4, 2008 How about it the Europeans have the Euro its time we take the advice of our Malaysian brothers. I say get rid of the shilling and and bring back the gold standard Quote Share this post Link to post Share on other sites
N.O.R.F Posted January 5, 2008 Interesting ya Thierry. I'll be back with my laba diinaar when time permits IA (have to get my economist hat on). Quote Share this post Link to post Share on other sites
Cara. Posted January 5, 2008 Is there a copper dinar for buying coffee or a newspaper? Quote Share this post Link to post Share on other sites
