Modern gold dinar
The Islamic Dinar is a gold-based currency replacement.
The Islamic gold dinar is a coin that was suggested by members of the Sufi Tariqa of Murabitun as an expression of a gold-backed currency substitute. An Islamic Dinar consists of 4.25 grams of 22 carat gold. There is also a medal of 3.0 grams of silver (Dirham ) to serve as a minor unit of currency. The gold medal shows the al -Haram Mosque with Kaaba in Mecca, the medals of silver shows the Prophet's Mosque with Muhammad's grave in Medina on one side. On the other hand, the Shahada is shown with two medals.
As payment propagated to the dinar find as spare or counter currency to the U.S. dollar using and replace it in the Ummah under the Islamic banking and Islamic finance. Since the Koran fiat money ( " debt," Fiat Money ) prohibits, to be reintroduced after the Murabitun view the 100 percent gold backing. Thus, the Islamic world was independent of the interest Western-style capitalism. The currency subject to any inflation. However, the problems are ignored, the enforced at the time the abandonment of the gold standard ( in particular, the different performance of gold and silver prices and the global to small gold and silver reserves).
History
The idea of a " re-introduction " of the gold standard is derived from the Spanish Professor Umar Ibrahim Vadillo, founder of the Murabitun. The first medals were minted in 1993 and sold to members of the organization. Since 1997 there is the e - dinar for trade on the internet.
Vadillo received the support of Dubai Islamic Bank and the Government of Malaysia. The Bank, through its subsidiary e - dinar ( offices in Dubai and Labuan ) to an online payment system, the unit of account e - dinar is to be covered by deposited gold. At the same time in the Dubai Islamic Mint Company also dinar Medals are marked and sold around the world since 2001. In East Germany, a not inconsiderable number of medals was sold, according to the organization.
Malaysia has repeatedly tried other Islamic states to win for bilateral trade in gold dinars to be more independent of the U.S. dollar; last in June 2005 at a meeting of the Organization of the Islamic Conference. Except for a non-binding letter of intent of Iran, there was no response.
Status of the coin
The medals are neither legal tender nor a currency. Your price is determined by the value of material and production costs. Their value alone on the material value less selling costs. Consequently, they are most comparable to that of his contemporary expressions of the ECU before the euro introduction.
Although the gold medal has a high gold content, it is not used at least in the Western world as a bullion coin. Since it is not a legal tender, it does not recognize the EU as a bullion coin. As a consequence, the Islamic Dinar is not exempted from import tax, what the legal purchase in Europe also more expensive. (Council Directive 77/388/EEC of 17 October 1977 as amended by Council Directive 98/80/EC of 12 October 1998, announcement of the list of persons exempt from import VAT bullion coins in accordance with Article 26b, point A, ii ) in the Official Journal of the European Union under the ABL. EU 2005 No. C 300 p.10).
Other uses
The term Islamic Dinar is at the Islamic Development Bank operations, but has nothing to do with the gold dinar. It is the internal accounting unit of the bank and corresponds to a special drawing right.