ipl-logo

Advantages And Disadvantages Of Gold Dinar

1373 Words6 Pages

Gold dinar is the gold coin that was issued since ancient time and was used as a currency because it is a stable measure of value and being used as a medium for exchange either buying or selling. There were a good sight and also a bad sight regarding the implementation of the gold dinar in international trade which is has been used for a long ago. Gold dinar also have a few advantage and disadvantage when using gold dinar system in international trade. Firstly, the advantage is Gold Dinar are compliant with Shariah law. As we can see, this currency is aim to revive historical gold from the beginning of Islam until the end of the Khalifah. Gold Dinar also approved by Shariah law of deen. It is additionally mentioned in the Qur’an, and sunnah. It shows that it will free from riba, gharar and maisir. For example, there will no Riba al-Fadl which implies (interest with further commodity). For instance, as Government will no longer be able to absolutely influence the circulation of gold. In Asia, it have a few Muslim countries that using a Gold Dinar as currency, for example Indonesia which …show more content…

Not many country having ability to produce the gold dinar if this gold dinar been apply as medium transaction for international trade due to the lack of natural resources in their own country, so they maybe need to get this gold supply from outside where it will increase the cost for the overall operation. In another situation where gold dinar also have a few limitation because most of gold dinar are issued privately and are not legal tender. For example, state government of Kelantan allows gold dinar to be used in transaction in their own state but while it is illegal to used it outside Kelatan due to federal law where only allowing transaction to accept the Ringgit Malaysia inside Malaysia. So, this means that the Gold Dinar has a limited

Show More
Related

  • How Did Jay Gould's Gold Market

    584 Words  | 3 Pages

    Gold was still the official currency of international trade at the time, but

    Read More

  • 1450 To 1750 Research Paper

    628 Words  | 3 Pages

    The reason for this change is because paper money was cheap to produce causing it to become low in worth. An example of this would be China’s trade with the Europeans for their silver since it was a precious metal that could not be found in China. Another example of this would be the Chinese smuggling in opium when silver declined in worth later

    Read More

  • Mongol Influence On Eurasia

    726 Words  | 3 Pages

    In Persia, paper money was introduced to fix financial problems due to excessive spending. The ilkhan ordered all subjects to accept the new currency as payment. The paper money was looked as worthless by the general public, and merchants closed shops, bringing commerce to a halt. When commerce through the empire came to a stop, the already declining empire began to completely collapse. In china, paper money was introduced in the Song and Tang dynasties and was continued by the Mongols.

    Read More

  • Power Of The Federal Government In The 19th Century

    674 Words  | 3 Pages

    Before a single form of currency was established, local banks were allowed to make loans that were issued by their own bank notes. The local banks did not have to use gold and

    Read More

  • Benefits Of The Gilded Age

    935 Words  | 4 Pages

    The United States today is credited with many different achievements, such as being one of the most successful countries in the world. Some of these accomplishments include conquering problems one by one with durable work ethic, and having a daring reputation of being righteously independent. But when one lifts up the rug, they can find all the dirt, dust and issues hidden below. A term known as the “Gilded Age”, created by Mark Twain in the late 19th century, explains a problem such as America’s. Metaphorically lined with shining gold, America is perceived as perfect, and people from other countries yearn to have a taste of the freedom and riches provided.

    Read More

  • Ap World History Dbq Questions And Answers

    548 Words  | 3 Pages

    1 The Persian War led to the Gold Age in Greek. Persia tried to invade Greek in 490 BC and 480 BC for twice, both of which were ended with the victory of Greek. Greece's victory ensured the independence and security of the Greek city-states, so that Greece continued to dominate the eastern Mediterranean for centuries, which is known as Gold Age. (Section 2.3) 2 As the culture center of Greek, Athens had many advantages during the Gold Age.

    Read More

  • Why Is Andrew Jackson Bad

    569 Words  | 3 Pages

    “The bank is trying to kill me, Sir, but I shall kill it”, Jackson” as he said to the Vice President Martin Van Buren as he reacted to the charter. Yet, trying to make the value of gold and silver equivalent to paper is not really a great idea. Today right now, gold and silver is worth millions of dollars. Eventually, people are going to notice that it is going to get more difficult to find gold and silver. Trying to make them the same value would of be crazy difficult.

    Read More

  • What Is The Penny Cost-Effective?

    356 Words  | 2 Pages

    The penny has been used in many day to day scenarios and is recognized throughout history and even dates back to the Frankish Empire. However, many people see the penny as useless and not cost-effective. The reasoning behind this thinking is that the penny cost more to produce than its actual value, and they take up too much space and time. The cost of pennies is causing a lot of unwanted debt due to pricing for the materials.

    Read More

  • Negative Effects Of The California Gold Rush

    744 Words  | 3 Pages

    I. The California Gold Rush is one of the most known gold rushes in the U.S. The phenomenon was started by James Marshall when he found gold in the American River and he said “My heart thumped for I knew it was gold.” Because of his findings the California Gold Rush was born in 1848, then died seven years later in 1855. During these seven years California accumulated over 300,000 people that left their homes to mine for gold.

    Read More

  • The Allure Of Gold During The California Gold Rush

    175 Words  | 1 Pages

    Gold is just like money. Sometimes gold and money can get a person killed. Some people did die during the California gold rush. People like gold because it is shiny. You can melt gold and make a gold tooth.

    Read More

  • Federal Reserve Bank Pros And Cons

    119 Words  | 1 Pages

    The Dollar bill has no value since the Federal Reserve act was signed by President Woodrow Wilson December 23,1913. The Federal Reserve Bank is a private Institution. It is not government owned or operated. It is not "owned" by anyone. It is the nations central bank and get 's it authority from the Congress of the United States.

    Read More

  • Mansa Musa's Journey To Mecca

    1185 Words  | 5 Pages

    Wallerstein described how Cairo’s “economic crisis was accompanied by a breakdown of its monetary system.” The dramatic drop in the value of gold, which people majorly depended on as currency, showed that the economy there had clearly declined tremendously due to Musa’s distribution of gold in Egypt. Just as Alkhateeb stated, “the effect that Mansa Musa’s visit had on Egypt clearly shows the wealth and importance of the Mali Empire, even when it encountered far-off lands.” By the end of the fourteenth century CE, the economy in Egypt experienced a depreciation due to the substantial decline of the currency system. Although Mansa Musa set out on the Hajj in order to help others in need by generously giving out bountiful amounts of gold, the results ironically turned out to have a significantly negative impact that lasted for as long as 12 years—over an entire decade—until the Egyptian economy could gradually and finally recover from the damage Mansa Musa had

    Read More

  • Remittance Literature Review

    1425 Words  | 6 Pages

    In the period of 90s there was a study Bliss (1989) he found and prove that remittance can be used as a good tool to fill the gap of foreign currency shortage. He argues that some of the developing countries can’t achieve the economic growth because of shortage of foreign

    Read More

  • Macroeconomic Factors Affecting Apple Company

    2241 Words  | 9 Pages

    For example, the sales of Apple products in US will decrease if there is a rise in the US. Because of this the purchasing power will also decrease. Hence the sales will be reduced. Hence, to reduce the rise effect, Apple has purchased itself foreign currency.

    Read More

  • Roles Of Money In Macroeconomics Essay

    1772 Words  | 8 Pages

    ROLE OF MONEY IN MACROECONOMICS 1. Introduction Money can be seen as the medium of exchange which is acceptable while transaction is being undertaken between two parties. Some of the common forms of money are: - Commodity money: This is when the value of the good represents its value in terms of money like gold or silver. - Fiat money: This is when the value of the good is less than the value it represents - Bank money: It is the accounting credits that can be used by the depositor Money serves a variety of crucial functions in the economy and this is why it has gained an unparalleled influence in the matters of economy at micro as well as macro levels. Some of the features of money that make it so important for any economy are as follows:

    Read More

More about Advantages And Disadvantages Of Gold Dinar

Open Document