Sunday 5 June 2011

THE USAGE OF DINAR AND DIRHAM

 
        Gold has 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.


        In addition, the price of gold is always increasing from time to time. By saving a portion of gold as your asset you already have a good financial insurance policy. In future, gold will be an important asset to mankind.




Pay zakat


Literally, zakat means grow ( in goodness ) or  ‘increase’, ‘purifying’ or ‘making pure’. So the act of zakat means purifying one’s wealth to gain Allah’s blessing to make it grow in goodness.

        “My mercy encompasses all things, but I will specify it for the righteous who give zakat” (7:156)

       
         Zakat cannot be paid with a promise of payment.Zakat can only be paid with tangible things. It cannot be paid with a promise to pay or a debt, called in Arabic dayn.

        In the beginning, the zakat was paid with dinars and dirham. Under Islamic law, zakat 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










To Pay Mahr


        


           Mahr is some amount that has to paid by a husband to his wife in marriage. It is paid as an honour and respect and to show that he has a serious desire to marry her. This also shows that he is not simply get married without any sense of responsibility and obligations on his part.




As-San`aani (Book : Subul As- Salam ) 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”






AS MEDIUM OF EXCHANGE







         The Gold Dinar is bullion gold coin primarily used in all the Islamic countries. They are a legitimate medium of exchange. The Gold Dinar is also known as ‘Islamic Gold Dinar’ the other currency used in Islam is the silver coin ‘Dirham’.

        Gold's beauty, scarcity, unique, 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.






AS A GIFT



             Since gold is valuable and rare, that is why its value is always increasing. It can be a very good gift. This precious and valuable gold will be absolutely appreciated human. This is why we can see the older generation passing gold to the younger generation via gold jewellery and the other form of gold such as ring, necklace and bracelet.










TO SAVE 


           Gold or silver are the most stable currency the world has ever seen.From the beginning of Islam until today, the value of the Islamic bimetallic currency has remained surprisingly stable in relation with basic consumable goods.

          A chicken at the time of the Prophet, sallallahu alaihi wa sallam, cost one dirham; today, 1,400 years later, a chicken costs approximately one dirham.In 1,400 years inflation is zero.




          Could we say the same about the dollar or any other paper currency in the last 25 years?

          In the long term the bimetallic currency has proved to be the most stable currency the world has ever seen. It has survived, despite all the attempts by governments to transform it into a symbolic currency by imposing a nominal value different from its weight. 



The EFFECT of the Dinar and the Dirham on Business


          Paper-money, which does not render any service except in exchange for something productive, is made artificially
productive by interest.

          On the other hand, every genuine enterprise, like the use of a
house or a manufacturing process, can only be productive by
the services rendered to society.





          Interest competes and wins over genuine enterprises profitable to
society. The genuine business has to pay the interest out of the
profit from a genuine service to society, but the bank makes
profit out of the interest through the artificial expansion of the
money lent.

 







          The final result is that the higher the interest rates the greater the
destruction of 'less competitive" businesses.

The EFFECT of the Dinar and the Dirham on the Real Estate

          Today you want to buy a house and a bank will offer you a mortgage. This is how the ring distorts the operationthe house.

          The annual rent of this house is 10% of its value but,the same money is offered by the bank at 5%, which considering inflation is a bargain!


            Why would the bank be so generous, when it could rent the house and obtain the house plus a higher 10% return? This is the paradox of the ring.
Out of that 5% interest the bank will make a 100% profit with the mathematics of the ring.

            The borrower thinks that the interest is better than paying the rent, the bank makes a higher profit out of expanding money who loses? All the holders of the newly inflated currency by its loss of value (inflation).








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