Islamic gold dinar
From Wikipedia, the free encyclopedia
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.
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[edit] 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
[edit] Dinar history
According to Islamic law, the Islamic dinar is a coin of 22k (91.7%) gold weighing 4.25 grams. The Islamic dirham coin is 3.0 grams of pure silver. 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. |
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[edit] Modern history
As a consequence of the currency crisis in Asia, in the first part 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 intended to replace the American dollar and, as a gold-based currency, provide a medium of exchange more stable than the dollar. 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.
[edit] Gold dinar in Malaysia
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.
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:
- Saving them, because they are wealth in themselves.
- Paying zakat and dowry as established within Islamic Law.
- Buying merchandise from outlets.
- 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.
[edit] See also
[edit] External links
- The official producer and promoter of the Islamic Dinar and Dirham
- The official producer and promoter of the Islamic Dinar and Dirham (Malaysia)
- Pakstrategy pages on the Islamic Dinar
- Exchange Rates
- The Zakat Pages - Everything you need to know about the 3rd pillar of Islam and the necessary use of gold
- Islamic Gold Dinar Will Minimize Dependency on U.S. Dollar
- Gold Dinar
- An English blog about the gold dinar
- A Malay blog about the gold dinar
- The Gold Dinar Research Group (GDRG) Malaysian website
- Industrial Survey Research Data Analysis online Malaysian webportal
- Islamic Scholar Imran Hossein
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