The History Of The Use Of The Currency Of The Dinarr

Money dinars is the currency used at the time of the Prophet Muhammad. In fact, the money comes from the Roman denarius which was then led by Dinarius. Because of its shape can also be used to store the property, then the money remains in use in the dinar, the Prophet Muhammad. In addition to the currency of the Dinar, there is also money dirhams. A value of 1 Dinar is 10 dirhams.

The dinar money money proved to be able to maintain the stability in value along the time. At the time of the Prophet Muhammad, one can buy a dinar oxtail/healthy goat and fat for animal sacrifice. Currently, with 1 dinar were we can still buy cattle or goats are great for a sacrificial animal.

The function of money in Islam there are three Exchange tools as, as a means of measuring wealth, and as a means of storing wealth. Of the three functions of money, have been shown to meet the third dinar elements.

The Stability Of The Currency Value Of The Dinar

Currently many movements that call for money back using the dinar. Not only that, many areas have used money as intermediaries in transactions dinar residents. In addition, the current were also widely available books and literature that explains the advantages of cash dinars.

In this modern era, the currency is widely used by countries in the world is not the currency of the dinar. In most cases the money that was used when this is fiat money, the money value of the face value is greater than the value of instrinsiknya. E.g. paper money that we use today.

Many economic experts of Islam which holds that the use of fiat money means also contributes to the economic crisis that is occurring now. This happens because each issuance of paper money not diback up with real sector like gold (at the time of the bretton wood agreement) or other commodities.

So every time that fiat money issued, then the Publisher enjoying the difference in the value of the nominal value of money and of fiat. The difference is also known by the term seignirage.

Experts argue that to save a fortune at the time of this now then we have to measure it with gold or benchmark value of dinar money. Because the true riches that we have today can be diminished or eroded its value with inflation every year there are gold or money, while the dinar is the only currency that could be spared from inflation.