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Friday, October 24, 2008

Construct A New Currency

The crisis in Asia and Latin America has been the economy and threaten the stability of developing countries, even the 1997 crisis and 1998 is a threat to the entire world economy. Mid-1997 crisis is also in Indonesia, even Indonesia is a country that suffered the most severe. Economic growth in previous years around 7% per year until the sharp slump - 13.7% and inflation reached 77.6% in 1998, which begins, the occurrence of the exchange rate fluctuation in July 1997. Europe tried to prevent the crisis by creating joint currency, the Euro, which initially lower the value of the U.S. Dollar, Euro, but now the value is higher than U.S. dollar. In 2008, the United States also experienced a crisis that affects the entire world crisis, the United States because of trade with other countries using the currency of dollars the United States.
Learning from Europe, the Middle-East countries and Asia can also make a joint currency, for example, political or Dirham. Dinar is the currency in the Roman era and Dirham is the currency in the Persian era. Trade is the basis of the economy in Arabia before Islam came. Prerequisite for the transaction is the means of payment that can be trusted. Arabia and neighboring areas are under the direct authority of Persia and Rome. Unit of the money is used countries is the Dirham and the dinar. In the transaction of business Arabia in the second type of currency is also accepted. With more strong political both countries, the payment instrument is more trusted in the region that are under the influence of power. Because of that factor, the Persian nation and the nation's Roman is the only trading partner of the Arab people (Sadr, 1989).
Dirham coin and the dinar has the weight and still have the content of silver or gold that remains. However, during the dynasty Umayyah and weighing Abbassiyah dynasty changed, so also in the Persian own. In the period after Islam, the content of silver coins Dirham between different areas of one to the other, but in the early Islamic period has been fixed. At this time the amount of charity gold and silver as mentioned in the book is based on the severity of the holy Dirham and the dinar coin set in the early Islamic period (Kattani, 1975:413). Value of one dinar equal to ten Dirham (Sadr, 1989). But in the Dynasty Fathimiyah namely in the Al-Hakim bin Amrillah dinar price equal to 34 Dirham because many Dirham mixture (Al Maqrizy, 1988:70-80). In dinating the Ottoman period, the official financial system Utsmaniah since 1534 Base on the goods in gold and silver mines, with 1:15 (Imarah, 1993:101). In addition dinar and Dirham, there is money to meet the needs for goods sales slightly cheaper price of one Dirham or part of the Dirham, because the first since up to now people need a tool to exchange other than gold and silver. To meet the needs of the purchase of cheap goods, they print a few of copper in the process of small pieces of money given name (copper cash) (Al Maqrizy, 1988:90). Value of money compared Dirham in the early Islamic period is 1: 48 (Al-Hallaq, 1986:17). Value does not keep the money to increase the copper Dirham in the year 756 H with a ratio of 1: 24 (Al-Sayuthi, 1975:104).
Dinar and Dirham is the currency stable world from the beginning of Islam until now. Inflation in 1400 after years is zero. The price of chicken in the Messenger of Allah s.a.w. 1 Dirham and now is still about 1 Dirham (Vadillo, 1998). Dinar currency is ideal to facilitate and improve international trade and minimize speculation in the paper money that can trigger the Asian currency crisis of 1997. The existence of a fund unity between the countries of East and Central Asia will increase the quantity of trade between the countries in the region and help enhance economic development if the condition of providing money dinar were successful. Currency idea to help minimize the gold dinar currency hagemoni dollars the United States and once again use the dinar as an international currency because the value of paper currency continues to fluctuate sepertimata not have the money value of gold is stable and durable, their value is the value of the metal itself.

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