Golden dinar. Project for the introduction of the golden dinar

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, some of the world's financiers come to the conclusion that it is necessary to return to the gold standard. This is the name of the monetary system when the currencies of states are pegged to gold. With this idea, they want to “cure” the world crisis. Economists view such a proposal in different ways: some of them consider the gold dinar a hopeless idea, others are trying to implement it.

Theoretical background

The idea of creating a currency for Muslim countries backed by gold is not new. It was mentioned in the Qur'an: it recommends Muslims to resort to using this money both during transactions, and as savings, and for paying taxes.

The Koran forbids usury, and most of the followers of this scripture believe that banknotes made of paper are not money. This led to the fact that Islamic banking is a special system, where the leading role is assigned to the Islamic Development Bank. It was created by 55 eastern countries, on the territorywhere the main raw material resources of the planet are concentrated. The economy of these Muslim states is growing rapidly, but it is very dependent on the US dollar. If the gold dinar were introduced, the dependency would weaken. The dinar exchange rate would be higher than the value of one dollar. That is, in this case, in addition to the economic, there is also a political background.

Opponents and supporters of the gold standard

Some economists (opponents) believe that there is a limited supply of gold in the world. And if the volume of the gold standard is equal to the stock of this metal, this will hold back the growth of production. The level of production of the “yellow” metal is lower than the pace of the economy, and its reserves are also unevenly distributed around the world. The movement of capital, on the contrary, is much freer than before.

Supporters believe that the gold currency will help stabilize the economy, reduce inflation, because in this case the state will not voluntarily issue banknotes that are not backed by the precious metal.

Gold standard concept

The gold standard is called the monetary system, when the main means of payment is a limited amount of gold. In this case, a guarantee is given that the monetary unit is exchanged for the same amount of gold. For settlements with each other, states set an exchange rate calculated on the ratio of their national currencies to gold (per one unit of weight).

Origins of the standard

Several types of gold standard are known to exist:

1. The first one isclassical (gold coin): the system of banknotes was based on gold coins. Along with this, banknotes were also issued, which were exchanged for coins at the established rate written on these banknotes. This system worked until World War I broke out.
2. Next came the gold bar standard. Banknotes could be exchanged for a gold bar weighing 12.5 kg. The exchange rate of the dinar against the ruble was not yet precisely determined.
3. Third type: gold exchange. Arose after the end of World War II. Its foundations were laid at Bretton Woods: America pledged to exchange gold at the rate of $35 for 31.1035 grams (troy ounce). Only the states, using their central banks, had the right to change the American currency for gold. In August 1971, these operations were suspended due to a discrepancy between the actual value of the US currency in relation to gold. A year later, this standard was completely canceled.

Revival attempts

After two decades, the world again began to talk about the revival of the exchange of currencies for gold. Then they offered to introduce a gold dinar.

Why the dinar? Most Islamic states export oil and other natural resources. Commodity exchanges around the world trade in US currency, so countries receive payment for their raw materials in US dollars or in the form of numbers on their accounts. In fact, such figures are not backed by anything, and therefore are very unreliable.

This prompted Eastern countries to take a step towards reducing their dependence on the dollar. In 2002, it was proposed to introduce the golden Islamic dinar asinternational currency. It was not supposed to be used in daily calculations. The bottom line is that the reserves of this currency would be in the central banks of the states that would be participants in this system.

The currency of the Islamic state involved the use of a netting system. The foundation of the latter is bilateral contracts between the parties to the agreement. This would negate the issue of lack of gold to issue coins.

The idea was as follows: the precious metal was exchanged for natural resources. The main exporters of energy resources are Turkey, the United Arab Emirates, Indonesia, Saudi Arabia, and Malaysia. If the gold dinar were introduced, these countries would benefit greatly, as they would receive up to 20 tons of gold annually.

Despite the freezing of the project in 2003, in Malaysia, in one of the states, a dinar was minted - a coin that was declared a legal currency along with the national one. But the federal government did not support such an initiative.

The idea is in the air

In the 1990s, Turkish authorities began to insist that the Islamic State's currency still start working. It was proposed that the dinar would become the currency of the Islamic Eight. Libyan leader Muammar Gaddafi has also repeatedly heard a desire to abandon the European and American currencies in favor of switching to the Islamic dinar.

Bringing it to life

From that time on, the idea of an Islamic currency began to materialize. E-dinar Ltd was founded and is headquartered in Malaysia.

This company is nothing more than a bank that provides the opportunity to transfer your money into dinars, however, electronic ones. The weight of a gold dinar is 4.25 grams of gold. With the help of this bank, funds are transferred to dinars, the necessary calculations are carried out, then you can make a reverse conversion.

Users can open accounts free of charge, they just need to register and fill out a form on the site. The vaults of the company contain such a supply of gold bars that will cover the requirements of all those who have electronic dinars. In the first few years, the company registered three hundred thousand accounts opened by clients from different parts of the world. In addition to the already mentioned E-dinar, the system also has E-Dirham, equal to three grams of silver.

Gold currency spread

The end of 2001 was marked by the official ceremony of introducing gold and silver currencies into circulation. Coins are distributed through specially registered companies. The gold dinar is already circulating offshore in the Emirates and Malaysia.

As expected, the common currency of Islamic states will be introduced before the beginning of 2011. However, this did not happen. The date of introduction of the gold standard into circulation was postponed to the beginning of 2015. But even then this did not happen. As expected, the head office of the Central Bank of this currency will be located in Riyadh, the capital of Saudi Arabia.

Influence on Russia

According to studies, most of the gold reserves are in the US (about 8, 2 thousand tons). Next comesGermany (3.4 thousand tons). Then - France and Italy (2, 4 and 2, 5 thousand tons, respectively).

Talks about the gold dinar resurfaced after the 2008 crisis. However, this topic is not being developed in the Russian Federation, despite the fact that the appearance of such a currency may adversely affect the country's economy. Our Central Bank keeps almost all reserves in American and European currencies. As a result, the very appearance and exchange rate of the dinar will have an extremely negative impact on the financial stability of our country.

The whole world is still dependent on the dollar. Along with him, and Russia, holding more than half of its reserves in US currency. To date, no one sees an alternative.

Current World Affairs

In mid-2015, the press again began to spread information that gold coins were again wanted to be introduced on the territory of one of the Islamic states. The price of each will be $139.

Most economists agree that this is an attempt to demonstrate the seriousness of intentions. But there is nothing to do with reality. Experts consider this a failed option, because it is supposed to introduce money into circulation, the value of which is rigidly linked to gold. It turns out that certain reserves are needed. Returning to the gold dinar is very costly.

On the other hand, what is important is that there will also be paper currency, which will be backed by gold. Since the volume of trade within the Islamic state is small, gold to provide coinsit will take a little. Then an attempt to revive the dinar is feasible.

Today, anyone can issue their own gold dinars with gold, a 3D printer, and a layout that is emailed to anyone. However, whether it is worth it is not yet completely clear.

RF response

Instead of the Russian ruble, they plan to introduce a new currency. Since 2015, the Government of the Russian Federation has been discussing the possibility of a new currency that would replace the Russian ruble in settlements between countries. The exchange rate of the dinar against the ruble today is about 10.7 thousand rubles.

This explains the fact that in 2015 the Central Bank was actively buying gold, since it is this precious metal that will support a new type of national currency - the golden ruble.

The State Duma wants to change the ruble to another national currency in order to stabilize trading on the international market. To balance the exchange rate and reduce the level of speculation with the ruble between the SCO, EAEU, BRICS member countries, it is proposed to introduce the gold ruble into circulation. He will be able to stabilize the exchange rate of the national currency when converted to the euro and the dollar. This currency is also expected to minimize the level of speculative activity in these and other foreign currencies.

According to the deputies, the transition to a new currency will be the beginning of an important period, which will ultimately have a positive effect on the Russian economy. An example is the single currency of European countries.

For the new currency of Russia to appear,the constitution needs to be amended. In addition to the gold ruble, it was proposed to use the yuan as a settlement between countries.

As everyone remembers, from the middle of 2014 the ruble began to fall actively. The President of the country then instructed the government to develop measures to strengthen the national currency, the weakening of which was caused by speculative actions.

Instead of a conclusion

Muammar Gaddafi was the last president who wanted to abandon the US currency as the main one in settlements between countries. He actively worked in this direction - he tried to put the gold dinar into circulation. Unfortunately, Gaddafi was unable to realize his ideas.

Gold coins, the price of which will be backed by gold, will most likely lead to the collapse of the economic system of the United States. However, today it is too early to talk about it: there is still no alternative to the dollar.

For a long time, the US dollar was the main currency in settlements between states. The new millennium was marked by the emergence of a new currency - the euro. The European currency quickly took the place of the second world one. The emergence of a completely new unit of currency, which will have a different circulation technology and philosophy, will force the "old men" to leave their leading positions.

Given the ability of Muslim countries to control prices on the world market for raw materials, the transition to the gold dinar of Islamic states (participants of the Islamic Development Bank) will be a serious threat to the collapse of the currencies that prevail today.