What are Dinar and Dirham?
A Dinar is a coin with a specific weight of 4.25 grams of gold. A Dirham a coin with is specific weight of 2.975 grams of silver. The minting of the Dinar and Dirham into coins is the first step to bringing back a currency based on real wealth and value.
Are Dinar and Dirham legal tender?
No, Dinar and Dirham are not legal tender. Legal tender is the currency imposed on us by our government. They alone have the control over its distribution, creation and value. In Islam, we are free to choose our medium of exchange. The Dinar and Dirham are an alternative means of payment but their use is by no means an obligation on the people.
If they are not legal tender, can they be used as money?
Yes, they can be used as money on the basis of mutual consent. So long as both parties, the buyer and the seller, agree to the transaction there is no problem.
Are there denominations of Dinar and Dirham?
Yes, the Dinar and Dirham coins come in the following denominations: ½ Dinar 1 Dinar 2 Dinars 5 Dinars 8 Dinars
1 Dirham 2 Dirhams 5 Dirhams 10 Dirhams 20 Dirhams
Are these denominations written on the coins?
Yes. Both the denomination and the weight of the coin are specified on the face of the coin. E.g.: 1 Dinar, 4.25 grams.; 2 Dinars, 8.5 grams.; etc.
Why do non-Muslims use them too?
This is a currency for the people. As long as there is mutual consent between both parties, they can be traded anywhere and with anyone. The devaluation of paper money and inflation affect to all of us, muslims and non-muslims. Hence, all of us should fight against the imposition of a currency that makes our salaries and savings lose value over time.
Why use Dinar and Dirham instead of paper money?
Paper money only has value because it is based on legal compulsion. It has value because we are forced to use it. However, as the supply of paper money increases, it depreciates in monetary value. So while paper money is constantly losing value, the Dinar and Dirham are precious metals that store value. Using Dinar and Dirham promotes a stable currency and is a movement towards freeing people from usury.
Doesn't inflation affect Dinar and Dirham?
Over the ages, the prices of gold and silver have seen slight fluctuations due to the markets. However, in Roy.W. Jastrams book, 'The Golden Constant,' he explores the value of gold and how it has remained almost completely consistent over the centuries.
Isn't paper money backed by gold?
No, in August of 1971 President Nixon abolished the International Gold Standard making it the first time in history that currencies were not backed by gold. In December of that same year, the Smithsonian Agreement was signed in which countries agreed to appreciate their currencies against the United States Dollar. So every currency is not backed by gold but by U.S Dollars. And the U.S Dollar is backed by nothing.
Who authenticates the Kelantan, Cirebon, Ternate and Sulu Dinar and Dirham?
World Islamic Mint (WIM)--an international organisation currently operating from Germany--sets the standards for the gold Dinar and silver Dirham which includes acceptability, functionality, production, rates and security features of the coins.
In which countries are the WIM Dinar and Dirham recognised and accepted?
Malaysia is currently the centre of the Dinar and Dirham movement and has a large concentration of shops, businesses and activists. On 12 August 2010 the State Government of Kelantan declared that Dinar and Dirham Kelantan are for circulation and are currently the most popular coins in Malaysia.The coins are also presently accepted in parts of Thailand, Singapore, Indonesia, Sulu, Germany, Spain, England, South Africa, Egypt, United States of America, Saudi Arabia, Malaysia, Pakistan, ...
Who accepts them?
All shops, businesses and services worldwide with WIM stickers that reads "WE ACCEPT DINAR AND DIRHAM", allow payments and transactions using WIM authenticated Dinar and Dirham in their establishments.
What are their other uses?
Apart from direct trading, Dinar and Dirham can be used to pay zakat, as dowry, for savings or as gifts.
Is there enough gold in the world?
Yes, there is enough gold. Over the course of human history, a staggering 165,000 tonnes of gold has been mined which is a figure that is increasing daily. The scarcity of gold is what gives it its value. So its market price will forever fluctuate according to its scarcity and accessibility, like any other commodity.
Where can I get Dinar and Dirham?
To purchase the Kelantan Dinar and Dirham you can either contact a WIM authorised Wakala or any Kelantan Golden Trade (KGT) agent.To purchase the Cirebon and Ternate Dinar and Dirham you can contact a WIM authorised Wakala or an agent of Wakala Nusantara in Indonesia.To purchase the Sulu Dinar and Dirham contact a WIM authorised Wakala or agents authorised by the Sultanate of Sulu Darul Islam.
What is a Wakala?
A Wakala basically is a non-profit organisation responsible for spreading and distributing the Dinar and Dirham coins. It is similar to a money changer, but instead of exchanging paper for paper, they exchange paper for gold or silver.With the paper/electronic money collected from the exchange, the Wakala will buy gold and silver as soon as is possible. This is to ensure that it will not be affected by further depreciation of the paper/electronic money while in their possession, as well as to maintain a healthy supply of coins.
Is there a buy-back plan for the coins?
Yes, the Wakalas do have buy-back plans for the coins but these plans include a penalty of 5%-10% loss on the value of the coins. This is to discourage people from speculating on the coins and instead encourage them to use them in the shops and markets.
Where can we safe keep our coins?
There are many ways an individual can go about securing their valuable items. Our recommendation would be to either keep them in a safe place at your home or visit an establishment that provides services of safe deposit boxes.
What is usury?
The classical definition of Riba (usury) is: "Any unjustified increment between the value of goods given and the value of goods received". This is from Qadi Abu Bakr ibn al-Arabi in his Tafsir Ahkam al-Qur'an.Usury is the act of financial oppression that is prohibited by most religions and abhorred by people.
How can I get daily prices of dinar and dirham?
Are there any other services providing the daily prices of dinar and dirham?
For the prices in Ringgits Malaysia, DnD Today features an SMS service managed by Koperasi Amal Madinah Kuala Lumpur Bhd, see dnd.to/day for more details.