What is Dinar?
According to Islamic Law...
The Islamic Dinar is a specific weight of 22k gold (917.) equivalent to 4.25 grams.
The Islamic Dirham is a specific weight of pure silver equivalent to 3.0 grams.
Umar Ibn al-Khattab established the known standard relationship between them based on their weights: "7 dinars must be equivalent to 10 dirhams."
The World Islamic Trading Organisation following the standard of caliph Umar Ibn al-Khattab.
"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." Ibn Khaldun, Al-Muqaddimah
How are the Islamic dinar used?
1. The Islamic Dinar can be used to save because they are wealth in themselves.
2. They are used to pay zakat and dowry as they are requisite within Islamic Law.
3. They are used to buy and sell since they are a legitimate medium of exchange.
History of the Gold Dinar
In the beginning the Muslims used gold and silver by weight and the dinar and dirham that they used were made by the Persians.
Silver coin of Sasanian Yezdigird III
Since then the writing in Arabic of the Name of Allah and parts of Qur'an on the coins became a custom in all minting made by Muslims.
Under what was known as the coin standard of the Khalif Umar Ibn al-Khattab, the weight of 10 dirham was equivalent to 7 dinars (mithqals).
p/s: Mithqal is a unit of mass equal to 4.25 grams and mostly used for precious metals,
Abd al-Malik ibn Marwan (646AD - 705AD) was the fifth caliph of the Umayyads, which was the ruling dynasty that built a huge medieval Islamic empire stretching west across North Africa into Spain and as Far East as Pakistan. Whilst the Anglo-Saxon kingdoms of England lacked a written language, Abd al-Malik created the world’s first widespread uniform currency - the dinar.
Gold dinar of Abd al-Malik ibn Marwan
Although the new gold dinars and silver dirham’s were very similar in size and weight to the coins they replaced, their design for the day was completely revolutionary. Come 697AD the caliph had abandoned portraits of rulers or emblems of cities to adorn his coins in favor of simplistic inscriptions of verses from Al-Quran.
Al-Malik then decreed that the new currency should be the only one to be used throughout the entire empire, and anyone who failed to hand in their old coins for melting down and re-minting faced the death penalty.
This was the very first time that a state had defined a stable currency with such precision, producing coins in mints from as far afield as Spain to Tunisia, Azerbaijan to Afghanistan, which then for the ruler had the most advantageous position of strength since this allowed him to unify the tax systems across all the provinces.
The coins were also the very first to be marked with their individual year of issue - a practice elsewhere which became not widespread until the 15th century.
A statement of faith on the coins of Abd al-Malik states,
‘There is no god but Allah; Muhammad is His messenger.’
Al-Malik then decreed that the new currency should be the only one to be used throughout the entire empire, and anyone who failed to hand in their old coins for melting down and re-minting faced the death penalty.
This was the very first time that a state had defined a stable currency with such precision, producing coins in mints from as far afield as Spain to Tunisia, Azerbaijan to Afghanistan, which then for the ruler had the most advantageous position of strength since this allowed him to unify the tax systems across all the provinces.
The coins were also the very first to be marked with their individual year of issue - a practice elsewhere which became not widespread until the 15th century.
A statement of faith on the coins of Abd al-Malik states,
‘There is no god but Allah; Muhammad is His messenger.’
Picture: Silver dirham of Abd al-Malik ibn Marwan
n the next year he ordered the dirham’s to be minted in all the regions of the Dar-al-Islam. He ordered that the coins be stamped with the sentence: "Allah is Unique, Allah is Eternal". He ordered the removal of human figures and animals from the coins and that they be replaced with letters.
Gold and silver coins remained official currency until the fall of the Caliphate. Since then, dozens of different paper currencies were made in each of the new post-colonial national states created from the dismemberment of Dar al-Islam. This command was then carried on throughout all the history of Islam.
The dinar and the dirham were both round, and the writing was stamped in concentric circles. Typically on one side it was written the "tahlil" and the "tahmid", that is, "la ilaha illah Allah" and "alhamdulillah"; and on the other side was written the name of the Amir and the date. Later on it became common to introduce the blessings on the Prophet, salallahu alayhi wa salem, and sometimes, ayats of the Qur'an.
History has demonstrated repeatedly that paper money has been a permanent instrument of default and reducing the wealth of the Muslims. In addition, Islamic Law does not permit the use of a promise of payment as a medium of exchange.
Resources:
Gold and silver coins remained official currency until the fall of the Caliphate. Since then, dozens of different paper currencies were made in each of the new post-colonial national states created from the dismemberment of Dar al-Islam. This command was then carried on throughout all the history of Islam.
The dinar and the dirham were both round, and the writing was stamped in concentric circles. Typically on one side it was written the "tahlil" and the "tahmid", that is, "la ilaha illah Allah" and "alhamdulillah"; and on the other side was written the name of the Amir and the date. Later on it became common to introduce the blessings on the Prophet, salallahu alayhi wa salem, and sometimes, ayats of the Qur'an.
History has demonstrated repeatedly that paper money has been a permanent instrument of default and reducing the wealth of the Muslims. In addition, Islamic Law does not permit the use of a promise of payment as a medium of exchange.
Resources:
- http://www.islamic-awareness.org/History/Islam/Coins/
- http://en.wikipedia.org/wiki/Islamic_gold_dinar
- http://www.321gold.com/info/gold_dinar.html
- http://zakat.wordpress.com/history-of-the-gold-dinar/
- http://www.coinlink.com/News/world-coins/dinar-coins-of-the-ancient-world/
Usage Of Gold Dinar
Used As Saving
Gold have intrinsic value. Due to its beauty, rare and unique nature, gold is valued by mankind. Since 5000 years ago until today, mankind still value gold. Historically, gold has been a proven method of preserving value when a national currency was losing value. By saving a portion of gold as your asset you already have a good financial insurance policy.
Gold have intrinsic value. Due to its beauty, rare and unique nature, gold is valued by mankind. Since 5000 years ago until today, mankind still value gold. Historically, gold has been a proven method of preserving value when a national currency was losing value. By saving a portion of gold as your asset you already have a good financial insurance policy.
It Can Be Used to Pay Zakat
The literal meaning of the word Zakat is: grow (in goodness) or 'increase', 'purifying' or 'making pure'. The vital importance of Zakat is reflected in Islamic law:
"My mercy encompasses all things, but I will specify it for the righteous who give Zakat" (7:156).
Zakat must be given away "on the day of harvest" (6:141).
Zakat can only be paid with tangible merchandise, called in Arabic 'ain. It cannot be paid with a promise to pay or a debt, called in Arabic dayn.
From the beginning the zakat was paid with dinars and dirham. Most significant is that the payment of zakat was never allowed in paper money during all the ottoman period right until the fall of the Caliphate.
From the beginning the zakat was paid with dinars and dirham. Most significant is that the payment of zakat was never allowed in paper money during all the ottoman period right until the fall of the Caliphate.
Under Islamic law Zakat is a form of Muslin tithing to God for the support of the less fortunate or jihad and it is to be paid in gold or silver, not paper currencies without any intrinsic value.
Paper-money is called fulus, because it only represents money and does not have value as merchandise. It follows that since Zakat cannot be paid in fulus, which has no value as merchandise, it cannot be paid in paper-money, which value as weight of paper is null.
On this basis, it becomes clear the urgent need to restore the use of the Dinar and the Dirham as payment of Zakat
On this basis, it becomes clear the urgent need to restore the use of the Dinar and the Dirham as payment of Zakat
t Can Be Used As a Mahr (Mas Kahwin)
The mahr (dowry) is something that is paid by the man to his wife. It is paid to the wife and to her only as an honor and a respect given to her and to show that he has a serious desire to marry her and is not simply entering into the marriage contract without any sense of responsibility and obligation or effort on his part.
One of the more common names for it is Al-Sadaaq which comes from the word sidq meaning honesty or sincerity. As-San'aani (Book: Subul As-Salaam) explains its significance: "It indicates the sincerity of the husband's desire for his wife. In the religious laws before us the dowry used to go to the guardians."
Details can be read here: http://utusan.com.my/utusan/info.asp?y=2000&dt=0903&pub=utusan_malaysia&sec=hiburan&pg=et_02.htm&arc=hive&arc=hive
The history of Gold as money in modern coin form spans 2630 years, from 700 BC to about 1930 AD. The history of nothing but paper and base metal and silver coin in circulation spans about 40 years from 1930 to 1970. And the history of paper and base metal coin as "money", with no connection to Gold (or silver) anywhere on earth also spans a period now approaching 40 years - from 1970 to date.
Resources:
The mahr (dowry) is something that is paid by the man to his wife. It is paid to the wife and to her only as an honor and a respect given to her and to show that he has a serious desire to marry her and is not simply entering into the marriage contract without any sense of responsibility and obligation or effort on his part.
One of the more common names for it is Al-Sadaaq which comes from the word sidq meaning honesty or sincerity. As-San'aani (Book: Subul As-Salaam) explains its significance: "It indicates the sincerity of the husband's desire for his wife. In the religious laws before us the dowry used to go to the guardians."
In Malaysia, for example, one of the famous artists that use dinar as Mahr is M. Nasir when he marries Marlia Musa. Their mahr is 13 pieces of gold Dinar.
It Can Be Used As a Gift
Since gold is beauty, rare, have its own intrinsic value, increase in value over the time and cannot be destruct. It can be a very good gift. This precious metal will be appreciated by human. That is why we can see the older generation passing gold to the younger generation via gold jewelry and other form of gold i.e. Ring, necklace, bracelet, gold coin etc.
It Can Be Used to Buy & Sell As It is a Legitimate Medium of Exchange
Gold is money. Why? Because it fulfills, to an extent unmatched by any other physical commodity (Silver comes closest), all the pre-requisites of a money. It was rare and prized long before the concept of "money" was ever discovered. It has many other unique uses, and always has had.
Gold's beauty, scarcity, unique density (no other metal outside the platinum group is as heavy), and the ease by which it could be melted, formed, and measured made it a natural trading medium. Gold gave rise to the concept of money itself: portable, private, and permanent.
But for nearly three thousand years (since the first Gold coins were struck in Lydia in 700 BC) Gold's primary utility has been recognized as a MEDIUM OF EXCHANGE.
Since gold is beauty, rare, have its own intrinsic value, increase in value over the time and cannot be destruct. It can be a very good gift. This precious metal will be appreciated by human. That is why we can see the older generation passing gold to the younger generation via gold jewelry and other form of gold i.e. Ring, necklace, bracelet, gold coin etc.
It Can Be Used to Buy & Sell As It is a Legitimate Medium of Exchange
Gold is money. Why? Because it fulfills, to an extent unmatched by any other physical commodity (Silver comes closest), all the pre-requisites of a money. It was rare and prized long before the concept of "money" was ever discovered. It has many other unique uses, and always has had.
Gold's beauty, scarcity, unique density (no other metal outside the platinum group is as heavy), and the ease by which it could be melted, formed, and measured made it a natural trading medium. Gold gave rise to the concept of money itself: portable, private, and permanent.
But for nearly three thousand years (since the first Gold coins were struck in Lydia in 700 BC) Gold's primary utility has been recognized as a MEDIUM OF EXCHANGE.
The history of Gold as money in modern coin form spans 2630 years, from 700 BC to about 1930 AD. The history of nothing but paper and base metal and silver coin in circulation spans about 40 years from 1930 to 1970. And the history of paper and base metal coin as "money", with no connection to Gold (or silver) anywhere on earth also spans a period now approaching 40 years - from 1970 to date.
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