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Malaysian state launches Islamic currency

Discussion in 'World Affairs' started by Horus, Aug 19, 2010.

  1. Horus

    Horus ADMINISTRATOR

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    Malaysian state launches Islamic currency

    Thursday, 12 Aug, 2010

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    KUALA LUMPUR: A Malaysian state on Thursday launched the Islamic dinar and dirham as an alternative currency, allowing the golden and silver coins to be used as legal tender alongside conventional banknotes.

    Authorities in northern Kelantan state, which is ruled by the Islamic opposition party PAS, said the Islamic currencies would be used in many shops in the state in addition to the national currency, the ringgit.

    “We have over 1,000 shops that have signed up to our campaign and agreed to accept the dinar and dirham for the purchase of goods,” state cabinet minister Husam Musa told AFP.

    He said signboards have been erected in the main market in the state capital Kota Bharu to show the conversion table between the dinar and ringgit, and participating shops will display stickers to encourage people to use the coins.

    “The response has been very positive and all the coins which were worth a total of 2.0 million ringgit (629,000 dollars) have been sold out at the launch today,” said Husam, who is in charge of economic and finance planning.

    According to Islamic law, the dinar measures 4.25 grams of gold, while the dirham is 3.0 grams of pure silver.

    A golden coin is equivalent to about 582 ringgit (183 dollars) while the silver coin is worth around 13 ringgit but their values fluctuate according to market prices.

    Husam said the dinar and dirham currencies can also be used dealings with state government agencies, such as paying “zakat”, or alms for the poor.

    There has been a long debate in Malaysia, a Muslim-majority country with large ethnic Chinese and Indian communities, to introduce the coins as legal tender nationally.

    Former premier Abdullah Ahmad Badawi, whose administration promoted a moderate form of Islam that emphasised economic and scientific development, shot down the proposal to use the Islamic currencies.

    But his predecessor, Mahathir Mohamad, was an advocate of the dinar system and urged Muslim countries to use it as a trade instrument.

    The debate has died down since current Prime Minister Najib Razak came to power last year.

    DAWN.COM | Business | Malaysian state launches Islamic currency
     
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  2. Durrak

    Durrak SENIOR MEMBER

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    is se kia faida ho ga??:undecided:
     
  3. Horus

    Horus ADMINISTRATOR

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    Interest free currency = Halal banking.
     
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  4. Materialistic

    Materialistic FULL MEMBER

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    If it is so then its a great Idea!!
     
  5. Durrak

    Durrak SENIOR MEMBER

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    great idea
     
  6. AstanoshKhan

    AstanoshKhan <b>PTI: NAYA PAKISTANI</b>

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    Gold and Silver are the only things/assets in this world, which never gets devalue over the passage of time and just because of this reason, Prophet Muhammad PBUH has also foretold us, to invest in Gold and Silver.

    Good going Malaysia - Truly Asia
     
  7. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

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    What did they used before?
     
  8. lcloo

    lcloo SENIOR MEMBER

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    Halal Banking has been in Malaysia for few decades.

    The rebel state of Kelantan is governed by the Islamic Party of Malaysia PAS, an opposition party to the central government. However, issuing alternative currency is against Malaysia's banking law, unless it is use as instrument for investment rather than as exchange medium for trade and services.
     
  9. faisaljaffery

    faisaljaffery FULL MEMBER

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    No harm in introducing Islamic currency since Malaysia is an Islamic State
     
  10. BATMAN

    BATMAN ELITE MEMBER

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    People will not loose their money in shape of inflation!!!!
    Savings will not be loose their value and it is easy to calculate Zakat accurately.
     
  11. BATMAN

    BATMAN ELITE MEMBER

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    Gold is international currency.