Modern gold dinar

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 history
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 denomination
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.
Adoption
Indonesia
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 (IMN). and Logam Mulia.
Malaysia
In 2002, the prime minister of Malaysia proposed a gold dinar standard for use in the Islamic world.
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. The state of Perak followed suit, minting its own dinar and dirham, which was launched in 2011.
Islamic State
The leader of the UN-designated terrorist group Islamic State, Abu Bakr al-Baghdadi, announced in November 2014 that the Caliphate intended to mint its own gold, silver and copper coins in order to free the Muslims from the financial order that has "enslaved and impoverished" them. The currency would be based on the dinar coins minted by the Caliphate of Uthman ibn Affan and include seven coins: two gold, three silver and two copper, ranging in value from 7¢ to $694, their values based on the intrinsic value of the metals. The gold dinar is weighted at 4.25 grams and is made of 21 karat gold.
Despite a propaganda push for the currency, adoption appeared to have been minimal and its internal economy is effectively dollarized, even with regards to its own fines.
Other groups
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". Trinidadian scholar Imran Nazar Hosein has also been promoting the revival of Dinar usage, but has linked its use to Islamic eschatology.
Use
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:
Buying merchandise from outlets.
Holding accounts, and making and receiving payments as with any other medium of exchange.
Saving, as is done with any form of gold.
Paying zakat and mahr as established within Islamic law.
See also
Fals
Islamic banking
Notes
References
Ahamed Kameel Mydin Meera, The Islamic gold dinar, Pelanduk Publications, 2002,
External links
The Gold Dinar and Silver Dirham - authored by Imran Nazar Hosein
The Economist, October 16th 2003, Times are changing
Islamic culture
Gold coins
Islamic banking
Gold standard