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Modern gold dinar

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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, silver coins, or dirhams.

Dinar history[edit]

According to Islamic law, the Islamic dinar is a coin of pure gold weighing 72 grains of average barley. Modern determinations of weight range from 4.44 grams to 4.5 grams of gold, with the silver Dir-ham being created to the weight ratio of 7:10, yielding coins from 3.11 to 3.15 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[edit]

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 4.44 grams of pure gold, and a smaller denomination, the daniq, one sixth of that. Again by the law above, the dirham is 3.11 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 may be minted in either 24 karat "pure gold" or in 22k for greater durability. In either case the weight of the gold content will be as per law.[citation needed]

Adoption[edit]

Indonesia[edit]

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]

Malaysia[edit]

In 2002, the prime minister of Malaysia proposed a gold dinar standard for use in the Islamic world.[4]

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.[5] On 25 August 2013 Kelantanese government collected and distributed zakat from people in Kelantanese dinars and dirhams in a public ceremony officiated by Chief Minister Dato Nik Aziz Nik Mat.[6]

The state of Perak followed suit, minting its own dinar and dirham, which was launched in 2011.[7]

Other groups[edit]

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".[8] Trinidadian scholar Imran Nazar Hosein has also been promoting the revival of Dinar usage, but has linked its use to Islamic eschatology.

Use[edit]

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 also[edit]

Notes[edit]

  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. ^ "Starkers". The Economist. Retrieved 27 December 2015.
  5. ^ The Malaysian Insider, Kelantan launches gold dinar, August 12th 2010."Archived copy". Archived from the original on 2010-08-17. Retrieved 2011-09-05.CS1 maint: Archived copy as title (link)
  6. ^ "IslamDag.info". Retrieved 27 December 2015.
  7. ^ New Strait Times, Silver state launches dinar, dirham coins, March 1st 2011."Archived copy". Archived from the original on 2011-03-02. Retrieved 2011-09-05.CS1 maint: Archived copy as title (link)
  8. ^ "THE ISLAMIC DINAR – A WAY-STAGE PASSED" Shaykh Dr. Abdalqadir as-Sufi

References[edit]

External links[edit]