Cover Image

Gold dinar: the next component in Islamic economics, banking and finance

Islamic banking started with the objective of providing a banking system that conforms to the Shari'h, with the absence of interest or riba. Nonetheless, it has increasingly become evident that a convergence is taking place between the conventional and Islamic banking systems. Indeed, most Isla...

Full description

Saved in:
Bibliographic Details
Main Author: Meera, Ahamed Kameel Mydin
Format: Book Chapter
Language:English
Published: IIUM Press 2009
Subjects:
HG Finance
Online Access:http://irep.iium.edu.my/24/1/Real_Money.pdf
http://irep.iium.edu.my/24/
http://rms.research.iium.edu.my/bookstore/Products/206-real-money-money-and-payment-systems-from-an-islamic-perspectives.aspx
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.iium.irep.24
record_format dspace
spelling my.iium.irep.242015-09-09T07:58:39Z http://irep.iium.edu.my/24/ Gold dinar: the next component in Islamic economics, banking and finance Meera, Ahamed Kameel Mydin HG Finance Islamic banking started with the objective of providing a banking system that conforms to the Shari'h, with the absence of interest or riba. Nonetheless, it has increasingly become evident that a convergence is taking place between the conventional and Islamic banking systems. Indeed, most Islamic financial contracts are now tied to the market interest rate-the very thing they were supposed to avoid. This paper argues that convergence is indeed likely to happen due to arbitrage opportunities between the two systems. This paper reasons that the use of real monies like the gold dinar, like that which existed during the Prophet's time, as necessary for realizing a stable and just Islamic economic and monetary system. Fiat monet, with all its negative socio-economic effects, is simply not compatible with the maqasid al-Shari'ah. This theoretical paper argues in favour of the gold dinar and for its initial application in international trade settlement. It develops a mathematical model, i.e. a none-linear optimization problem to determine an efficient trading matrix that requires the minimum gold to settle the trade balances among participating countries. The solution to the problem also provides each country with a target gold holding for the trading period. IIUM Press 2009 Book Chapter REM application/pdf en http://irep.iium.edu.my/24/1/Real_Money.pdf Meera, Ahamed Kameel Mydin (2009) Gold dinar: the next component in Islamic economics, banking and finance. In: Real money: money and payment systems from an Islamic perspectives. IIUM Press, Kuala Lumpur, pp. 237-272. ISBN 9789673855766 http://rms.research.iium.edu.my/bookstore/Products/206-real-money-money-and-payment-systems-from-an-islamic-perspectives.aspx HG1252M742M 2009
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Meera, Ahamed Kameel Mydin
Gold dinar: the next component in Islamic economics, banking and finance
description Islamic banking started with the objective of providing a banking system that conforms to the Shari'h, with the absence of interest or riba. Nonetheless, it has increasingly become evident that a convergence is taking place between the conventional and Islamic banking systems. Indeed, most Islamic financial contracts are now tied to the market interest rate-the very thing they were supposed to avoid. This paper argues that convergence is indeed likely to happen due to arbitrage opportunities between the two systems. This paper reasons that the use of real monies like the gold dinar, like that which existed during the Prophet's time, as necessary for realizing a stable and just Islamic economic and monetary system. Fiat monet, with all its negative socio-economic effects, is simply not compatible with the maqasid al-Shari'ah. This theoretical paper argues in favour of the gold dinar and for its initial application in international trade settlement. It develops a mathematical model, i.e. a none-linear optimization problem to determine an efficient trading matrix that requires the minimum gold to settle the trade balances among participating countries. The solution to the problem also provides each country with a target gold holding for the trading period.
format Book Chapter
author Meera, Ahamed Kameel Mydin
author_facet Meera, Ahamed Kameel Mydin
author_sort Meera, Ahamed Kameel Mydin
title Gold dinar: the next component in Islamic economics, banking and finance
title_short Gold dinar: the next component in Islamic economics, banking and finance
title_full Gold dinar: the next component in Islamic economics, banking and finance
title_fullStr Gold dinar: the next component in Islamic economics, banking and finance
title_full_unstemmed Gold dinar: the next component in Islamic economics, banking and finance
title_sort gold dinar: the next component in islamic economics, banking and finance
publisher IIUM Press
publishDate 2009
url http://irep.iium.edu.my/24/1/Real_Money.pdf
http://irep.iium.edu.my/24/
http://rms.research.iium.edu.my/bookstore/Products/206-real-money-money-and-payment-systems-from-an-islamic-perspectives.aspx
_version_ 1643604559627550720
score 13.211869

Similar Items