Nuradli Ridzwan Shah Mohd Dali1 Lecturer, Universiti Tenaga Nasional Kampus Sultan Haji Ahmad Shah 26700 Pahang Tel: 09-4552028 Fax: 09-4552020 [email protected] Muhammad Rubini Kertapati4 Faculty of Business and Economics University Kebangsaan Malaysia 43600 Bangi, Selangor Tel: 016-2518987 [email protected] Hanifah Bte Abdul Hamid2 Lecturer, Universiti Tenaga Nasional Kampus Sultan Haji Ahmad Shah 26700 Pahang Tel: 09-4552037 Fax: 09-4552020 [email protected] “PUBLIC PERCEPTIONS TOWARDS GOLD DINAR APPLICATION: AN ONLINE SURVEY. ” Hifzur Rab3 Rahmat Nagar, Jhapia, Bamrauli, Allahabad 211012 India [email protected] ABSTRACT Keyword: Gold Dinar, Currency The former Malaysian Prime Minister, Mahathir Mohamad has suggested the usage of Gold Dinar as an international payment settlement among OIC countries as one of the solutions to the Asian financial crisis and the unity of the countries. However, the implementation of gold Dinar seems impossible because of IMF prohibition (Second Amendment to the Articles of Agreement in April 1978 which eliminate the use of gold as the common denominator of the post-World War II exchange rate system and as the basis of the value of the Special Drawing Right) and it is expected that the mechanism would eliminate the power of central banks to use monetary policy in maintaining price stability. Despite the hurdles, the demand for the return of the gold Dinar from intellectual discussions is high. In respond, an online survey has been conducted especially designed to identify the perceptions of the public towards the implementation of Gold Dinar as a currency. Introduction The Asian currency crisis has affected the South East Asian countries seeing several countries economics plunging downward damaging the domestic financial systems, while many companies were financially distress. The crisis was promulgated from the currency speculators activities, which led the to the depreciation of the currency due to lack of confidence to the country’s economic condition. Malaysia use capital control to overcome the currency from depreciating and pegs the Malaysian Ringgit at RM3.80 to one USD until present. Literature Review A decree was issued in Granada by Umar Ibrahim Vadillo (1991, 2002) stating that uses of fiat money is injustice provoking the Muslim community to reevaluate the existing financial system in upholding the Syariah economy. Furthermore he mentioned that the Islamic banking is fraudulent since the Islamic banking fraternity uses the fiat money duplicating the conventional system (Vadillo, 1991,2002). 1 However the majority Islamic scholars or ulama approve the usages of fiat money or paper money therefore his decree did not get many attentions from the Muslims. However, the 1997 Asian financial crisis has opened a new spectrum of rethinking on the existing monetary system in order to find a stable and justice monetary system. The revisit of gold Dinar has come into picture and attracted many attentions of economists, politicians, business leader and the former Malaysian Prime Minister Mahathir Mohamed. He urged the OIC 1 The author is a PhD scholar at the Faculty of Business & Economics, Universiti Kebangsaan Malaysia. 2 The author is a lecturer specializing in Management Information System 3 Chief Chemist –Oil and Natural Gas Corporation Ltd India. The author is a master scholar at the Faculty of Business & Economics, Universiti Kebangsaan Malaysia. 4 countries to adapt the gold Dinar mechanism as the international trade payment settlement before giving way to Abdullah Badawi. The idea was supported by academicians and practitioners from all around the world including Ahmad Kamel Meera Mydin (2002,2004) who also urges the OIC countries to start using gold Dinar for International trade settlement. In this mechanism, the participation of central banks and commercial banks are vital using the letter of credit as its vehicles. This mechanism is not intended to replace the usage of the domestic currency for local transactions because it will be used only for international trade settlement. However, scholars also were rethinking to look at the Gold Standard system as one of the alternative. In promoting the interest free economy, Tarek el-Diwany (2002) introduces the 100 percent gold-backed banking system and explains on how the existing financial system could be transformed into an interest free economy. Hifzur Rab (1995/1998) has shown that the use of fiat money causes massive exploitation of the have notes and its use as unit of account generates massive fraud. He has discussed problems it creates and suggested some solutions (2002). Later on Mohamed Nor Yakcop (2002) , presented a paper on the mechanism of gold Dinar, which was an extension to the BPA into Multilateral Payment arrangement, which involves more than two countries. The MPA would resolve the problems of scarcity of gold because only a little amount of needed to be set-off for a big volume of transactions. This mechanism seems viable but it needs the will power of the OIC countries to implement the system. Even though with the usage of gold Dinar in international trade could reduce speculative menace but it would not eliminate the speculative activities entirely since the price of gold or currencies will fluctuate and therefore it will be exposed to such activities. However, the speculation activities could be reduced to its minimum level (Nuradli Mohd Dali, Abu Bakar Mohd Yusof, Norhayati Mat Husin, 2002). Consequent papers supporting Dinar stressed that the implementation of gold Dinar could be the platform of Islamic unity (Umar Azmon, 2003 & Abdelhamid Evans 2003). The fiat money is also associated with seignorage as pointed out by Jaafar Ahmad (2003) which could reduce its purchasing power parity especially for developing countries in the OIC Comparison between the electronic payment system (E-Dinar) and the bilateral payment arrangement system were analyzed by Nuradli, Hanifah and Bakhtiar (2003,2004) to find out the most viable system that should be implemented and its market segmentation. The electronic payment system such as E-dinar is targeted for small businesses and individual whereas the BPA system is target to the exporters and importers and thus it will have impacts to domestic economies and balance of payment. It has been pointed out that the BPA system is more viable as compare to the electronic payment system due to the volume of trade that will involve and the amount of cooperation among the OIC countries that will involve in the implementation (Nuradli Mohd Dali, Hanifah Abdul Hamid, Bakhtiar AlRazi 2003, 2004). Research was also conducted on the MSC companies to see whether the companies are willing to use the gold Dinar as payment settlement and more than 40 percent of the respondents interviewed agreed to use gold Dinar since it could reduce the exchange rate risk. (Nuradli Mohd Dali, Hanifah Abdul Hamid, Azwari Kamaruddin 2003). Furthermore it could promote the economic social order and protect the consumers in consumerism with focus on reduction of debts, reducing the gaps between the have and the have not, and elimination of interest from mudharabah and musyarakah financing (Nuradli Mohd Dali and Norhayati Mat Husin 2004 a & b). Theoretical paper using the flexible model with the usage of gold Dinar seeing the impacts of gold dinar in a full swing dinar economy making the monetary policy seems impotent. (Nuradli Mohd Dali, Fidlizan Muhammad & Mohd Firdaus Azizan, 2004). The economy could not use the domestic monetary expansion policy unless new gold has been discovered or gold currency is being transferred from other countries through trading. 2 However, a previous paper on the same model was also developed by Nuradli Mohd Dali and Abdul Ghaffar Ismail (2004) using the Dinar system partially or side by side with the existing fiat money. It was noted that using this model the currency depreciation is lesser than the flexible model in the event of a domestic monetary expansion. Even though there are many scholars who wanted for the gold Dinar comeback the IMF regulation prohibits for any countries to use gold as a medium of currency. The Second Amendment to the Articles of Agreement in April 1978 eliminated the use of gold as the common denominator of the post World War II exchange rate system and as the basis of the value of the Special Drawing Rights (IMF, 2004). With the prohibition for the IMF members- therefore it seems impossible for any OIC countries to implement Dinar even for international trade settlement only. Despite of the hurdles, the demand for the return to the gold Dinar is seems high from the public. With this motivation, we conducted the survey analyzing on the perceptions of gold Dinar from the public perspectives. Research Objectives 1. To analyze the public perception on the implementation of gold Dinar 2. To evaluate the impacts of demographic profiles on the perception on gold Dinar 3. To assess if prior knowledge have impacts towards the perception of gold Dinar. 4. To identify challenges that has to be encountered in implementing the gold Dinar. The Limitation of the Study Since this is an on-line survey, it would not include respondents who do not have email facilities. This survey could not be extended to those who do not have on-line and emails facilities due to the financial constraints. Hypothesis In this research it is expected that the public want to use the gold Dinar as a medium of currency instead of using fiat money and education is also one of the most important factor that need to be stressed out in the implementation of gold Dinar. Justification of the Research This research is done to mainly identify the acceptance of gold Dinar as a medium of currency among the public in order for the country policy formulation if the Dinar is legally accepted for domestic uses. Furthermore, it is important to see that this area could be incorporated in universities’ curriculum should we want to implement the system. Since gold Dinar is such a comeback currency, we need more expertise in implementing as well as monitoring this system. Furthermore, the banking and financial institutions could contribute in opening gold Dinar counters for depositors. This survey could give a picture of the direction of the market demand in the Malaysian financial system. Research Scope The online survey was posted in the Internet from 8th of October 2004 and the cut off period was on the 1st of February 2005, which is about 4 months. Emails were sent to various e-groups and personal contacts. Problem with currency is a vital factor in the continuing onslaught of wrong against the right. Interest seeking and exploitative forces of economic enslavement have established a firm grip over the resources of the world and their control and dominance has been consistently increasing. Growing unemployment, disparity of income and wealth, poverty and deprivation, fraud and corruption, marginalization of justice and righteousness and accompanying loss of human freedom clearly shows that antihuman forces has usurped power and control over the globe and are trying the enslave the human race. achieved mainly by use of fraudulent economic procedures Foremost among the economic tools being used is interest. Next most important tool is fiat money (its depreciation). Interest and inflation are necessary and sufficient to ensure dominance of each other. Governments are forced to borrow on interest, to agree to unjust and exploitative terms of trade and commerce, to follow anti-people policies or the policies that weaken the unity and strength of the country, etc. All these are intended to push the under developed and developing countries into the debt trap and then to enslave them. Exploitation and Fraud are integral parts of the system of interest Amount payable in lieu of interest based finance doubles and redoubles after a period and this redoubling continue. Suppose rate of interest is 10.41% then amount payable doubles and redoubles every 7 years. In 50 years it becomes 140 times and after 100 and 150 years it becomes 19991 and 2826581 times respectively. The amount that is returned by previous borrowers is again lent on interest to new borrowers and therefore this process doubling of dues continues despite the fact that many borrowers are able to repay the loan within a few years. Naturally things grow and then decay and there is nothing real that can continue to grow in this exponential pattern. Clearly debts created by interest-based finance can never be cleared. Number of people below line of poverty has been increasing and many poor countries have already been trapped by the debt created by interest-based finance. It follows that interest is a mechanism to enslave the people and any law that enforces its payment is unjust and inhuman. Further since it is not possible for any economy to continue to grow like this, it will have to go on reducing its yardstick of measurement of wealth i.e., currency. Considering that manipulation of measure corrupts the process of measurement, reduction in the quantity of wealth expressed by the yardstick of measurement is a clear case of fraud. Considering that wealth is most widely sought after, it is clear that manipulation of its unit represents a massive fraud. Considering that the system of interest cannot survive unless currency is consistently depreciated (i.e., quantity of wealth expressed by currency is reduced) it is clear that fraud is an integral part of the system of interest. Further since currency is normally used as unit of account, its manipulation corrupts the accounting process and thus, incorporates element of fraud in all our dealings. It confounds truth with falsehood and masses fail to distinguish between right and wrong. Further it makes non-exploitative and interest free modes of finance unviable. All these add to fraud corruption and deception. 4 Economy that allows interest will ever remain full with fraud and corruption, injustice, exploitation and oppression. Greedy capitalists are thus using mechanism of interest as a tool to enslave the humanity. Thus, Interest continues to suck the earning and wealth of the poor and transfer it to the rich. Inflation goes on reducing the worth of the savings of the poor. Inflation allows the prices of the products of the organized sector to be increased faster than increase in the prices of the products of the unorganised sector. It is why prices of commodities that poor people produce and sell have risen much less than the prices of the finished products that organized sector owned by the rich produces. Thus, every time poor people sell something to buy something from rich people they get less and overtime it represents a colossal loss. Similarly, prices of commodities that poor countries export have risen much less than the prices of the finished products that rich countries export. Thus every time poor country exports something to import something from rich country they get less and overtime it represents a colossal loss. Rich lend capital on interest and usurp most of the surplus produced by the economy, even if the enterprise where the capital is invested make losses the lenders are assured of payment of not only the capital but also the interest. Resultant increase in disparity goes on reducing the proportion of people who own enough resources to employ themselves. As the people get poorer they are not able to provide collateral required for availing interest-based finance. In the economy based on interest any economic activity that is not able to produce surplus at a rate higher than rate of interest cannot be run as it results in loss to its owner (entrepreneur). In the interest-based economy, expected return must be higher than the rate of interest for any business to take off otherwise it will result in a loss for the entrepreneur. If the interest rate were higher than the expected return, resources would be unemployed. Clearly mechanism of interest and growing disparity of income and wealth produced by it is responsible for growing unemployment. Further capitalism driven by interest compels labour to accept lower than just wages as labour do not have any other alternative to sustain themselves. 3 This enslavement differs from enslavement of the bygone era in that the slave may not be aware of his state of slavery. The slave continues to work efficiently thinking that he/she is working for himself/herself or for his/her country or community. However, most of the fruits of his/her labour get transferred to the slavemasters through the fraudulent economic procedures leaving for him/her only what is considered essential for his/her sustenance. This is what constitutes the so-called sustainable society. This, enslavement is being interest can’t coexist with human dignity and freedom and justice. [Freedom is essential, if man is to be held responsible before his lord (god). Money Free people used gold and silver coins as universal medium of exchange and continued to use these for thousands of years. Gradually these were replaced by paper money firmly linked to gold and silver. The fiat money backed by gold was as good as gold and silver coins and it was easier to transfer and store. Gradually reserve was reduced and thus, states were in no position honour their promise to exchange the paper money with quantity of gold/silver that was promised. Slowly link with gold and silver was completely broken and now we have fiat money that is not linked with any known quantity of wealth. Mainstream economists record these changes as if these were efforts to develop the economy and to ensure people’s welfare. However those who could wisely analyse the factors that lead to these changes and the consequences thereof together with the fact that it is not possible to believe that those who brought these changes were not aware of the consequences are led to believe that these changes were part of the most sinister long term strategically designed plans to enslave the people. Here we shall examine how and why this fiat money is one of the worst antihuman developments in the history of mankind. Fiat Money The money we use is the fiat money. It is money only due to fiat (order) issued by government. It has value because people need money to buy their requirements and they are not allowed to use gold or silver coins or any other real money. It is nothing real but it represents goods and services that it can buy. Strictly speaking it represents a basket of goods and services and it has same market value as the basket of goods and services it represents. Thus, in reality fiat money is a basket of goods and services that it represents. Fiat money of today is not the same as the fiat money of a year or more or less earlier or latter because it represents basket of goods and services that contains different quantity of goods at different times. 50 percent depreciation means the quantity of goods and services contained in the basket is reduced to half the quantity of goods and services it earlier contained. Thus, 10 dollar of today is not same as 10 dollar of yesterday or tomorrow. It applies to rupee, ringgit, riyal, euro etc. as well. Real money is a definite quantity of some valuable commodity normally gold and silver, well known to the people and that allows the people to participate actively in the process of price determination by the market. Fiat money is complex money; people hardly understand what it is and that allows the rich owners of the organised sector to manipulate market prices to serve their vested interests. To understand it more clearly consider a gold coin. Its value can fall for two reasons. Firstly gold may become cheaper with respect to other goods and secondly part of the gold may be cut off making it smaller in weight. However, if we consider value of gold coin with respect to gold it can fall only if some part of gold is cut and removed (from the coin). Price of any real commodity is constant with respect to itself and it can become cheap only if part of it is removed (uniform quality is assumed). Currency is a basket of goods and services and it become cheaper with respect to goods and services only because the quantity of goods and services contained in the basket is reduced. Thus value of currency falls only because quantity of goods and services that it represents is reduced. Depreciation of Currency The artificial reduction in the quantity of goods represented by currency leads to corresponding fall in purchasing power of currency and thus currency that is measure of value/wealth become smaller. For the sake of clarity, we shall restrict the use of the term, ‘depreciation of currency to this artificial reduction in the quantity of goods represented by currency. Clearly real currency cannot be depreciated except by reducing its content but that will be clearly understood by people and therefore cannot form basis for massive fraud and manipulation. 5 Compared to market value the cost of production of fiat money is almost nil. For example cost of production of a thousand ringgit notes is much less than a tenth of a ringgit. Therefore government can increase money supply almost without limit. Further the banks that are a vital part of the system of interest create more than 90% of money supply almost free of cost. Supply of real money cannot be manipulated freely and it involves prohibitive cost. However, it is to be noted that it is improper and misleading to talk of supply and demand in case of fiat money. As a matter of fact total supply of money represent the number of shares in that national out put is divided. Currency is equal to one share. To double the supply of money is to double the number of shares and therefore each share i.e., currency becomes halved. These are the important differences between these two types of money. Due to these differences fiat money is the worst antihuman innovation in the history of the human race while real money is a very important facilitator of justice5. Research Methodology The survey contains questions with aims to get the respondents’ point of views on certain issues on gold Dinar. The information was obtained from structured questionnaire, which was sent to respondents through email linking it to a website. With the advance of ICT, the authors managed to get 436 respondents to answer the questionnaires. General Perception of Gold Dinar Function of Money The Uses As Currency Gold Prevent Exchange Rate Risk Gold Increase Trade Gold economy needs knowledge Payments By Gold Dinar Conversion of Gold Dinar to Other Currencies Figure 1: Research Framework of Public Perception Towards Gold Dinar Application Knowledge on Gold Dinar influence Acceptance of Gold Dinar Results and Findings Demographic Profiles of the respondents Approximately 65.1 percent of the respondents are male and the remaining 34.9 percent are female respondents from a total of respondents of 436 people (Table 1a, Appendix 1). Majority of the respondents fall into between 29 to 35 years old, which consist 31.9 percent from the total respondents followed by 19 to 23 (18.8%), 24-28 (17.2%), 36-42 (13.5%), above 42 (10.8%) and 15-18 (7.8%) (Table 1b, Appendix 1). The respondents’ education background shows that 54.4 percent have university education while 41.7 percent have postgraduate degree and the remaining 3.9 percent have school, primary and secondary education (Table 1c, Appendix 1). 60.6 percent of the respondents’ country origin is Malaysia, followed by Indonesia 12.8 percent, United States of America 4.4 percent, United Kingdom and Pakistan 3.4 percent and the remaining 30.8 percent come from various countries from around the world (Table 1d, Appendix 1). The distribution of the respondents job position comprises 21.3 percent are executive, 20.9 percent are academician and college/university students evenly. The remaining 40 percent comprises from variety of positions from homemakers to professionals (Table 1e, Appendix 1). In addition, the data on the public perception questions was tested to see whether it is normally distributed or not using the skew test. From the result, data is found to be normally distributed since all the seven questions statistics result are lesser than 1 (Table 2, Appendix 2). For details on how currency depreciates please go to http://www.geocities.com/mohdddalins/hifzur_depreciation.doc 6 Findings 1: Mean analysis of the public perception on the implementation of gold Dinar The mean score result from the survey were categorized to 5 categories which are strongly disagree, disagree, Maybe disagree/agree, agree and strongly agree. The ranges of mean score according to its categories are tabulated as below: 5 Mean score 1.00 – 1.80 1.81 – 2.60 2.61 – 3.40 3.41 – 4.20 4.21 – 5.00 Interpretation Strongly disagree Disagree Unsure (maybe agree/ disagree) Agree Strongly agree 3.45 4.18 3.15 2.82 3.86 Agree Agree Unsure Unsure Agree Mean Interpretation 3.06 Unsure 3.94 Agree TABLE I: The Mean Score and Interpretations for Questions Given to Respondents Questions The function of Gold Dinar is as the same as the fiat money or paper money The uses of universal currency Gold Dinar as a medium of exchange for payments of goods and services are acceptable If gold is being used as a medium of exchange in the electronic payment system. It could prevent the exchange rate risk associated with the paper money With the implementation of gold Dinar, there will be a substantial increase of trade Knowledge is vital for the implementation of gold Dinar in the business community I am afraid that the other parties will not pay me/us using the proposed Dinar system I am afraid that I cannot convert the gold currency to my own currency or other currencies Based on the Table 1, the results show that many respondents were unsure whether the Gold Dinar could function as the same as fiat money, the acceptability of others towards Gold Dinar and the convertibility of the gold Dinar to other currencies. However, they are in the opinion that the uses of gold Dinar are acceptable and it will reduce exchange rate risk. Furthermore, the implementation of Gold Dinar will increase trade, and education is vital in implementing the system. Findings 2: Impacts of demographic profiles on the perception on gold Dinar Based on the Spearman’s Rho correlation (Table 3, Appendix 3) conducted on the demographic profiles of the respondents and the perception of gold Dinar, it was found that acceptability of gold Dinar has a negative relationship with gender (-0.210) at 95% confidence level, weak positive relationship with age (0.163) at 95% confidence level, weak positive relationship with education (0.156) at 95% confidence level and weak positive relationship with country origin (0.115) at 99% confidence level. Overall the gender, age, level of education and country of origin of the respondents could have an impact to the acceptability of gold Dinar. The prevention of exchange rate risk associated with paper in the implementation of gold Dinar also has a weak positive relationship with age (0.133) and level of education (0.171) at 95 percent confidence level. Overall age and level of education could have an impact to the perception whether gold Dinar could prevent exchange rate risk. Only country of origin has an impact on the perception of whether with the implementation of gold dinar could increase trade with a weak negative relationship of (-0.087) at 99% significant level. Therefore country of origin could has an impact to the perception of whether the gold Dinar could promote trade among countries, business and individuals. With regards to the perception of the importance of knowledge in implementing the gold Dinar, there are only age and level of education which have a weak positive relationship (0.160) and (0.100) at 95% and 99% percent respectively. These results show that age and education level could have an impact to the demand for formal knowledge in implementing gold Dinar. 7 The perception of public towards the acceptability of others to use Dinar has weak negative relationship for age (-0.101) at 99% significant level, level of education (-0.099) at 99% significant level and country of origin (-0170) at 95% significant level except for gender with a weak positive relationship (0.148) at 95% significant level. Thus these results show that all the demographic profiles of the respondents could have an impact on the perception whether the other parties would use the same gold Dinar for transaction. All four demographic gender profiles such as gender (0.203), age (-0.208), level of education (-0.185), and country of origin (-0.195) have a mix weak relationship with the perception of convertibility of gold Dinar to other currencies at 95 percent confidence level. Overall, the demographic profiles of the respondents could have an impact to the perception on gold Dinar except for the function of gold Dinar is the same as fiat money which is not significant. Findings 3: The assessment of ANOVA on prior knowledge and the perception of Gold Dinar. Based on the ANOVA results it is noted that prior knowledge on the Gold Dinar could influence the public perception on the uses of universal currency Gold Dinar as a medium of exchange (Sig. .000), reduction of the exchange rate risk (.000), the importance of knowledge for the implementation of gold Dinar in the business community (.001), and the convertible of the gold currency to other currencies (.016) since the significant levels are below than 0.05. However, for the other three perceptions, prior knowledge does not have a significant different for the function of gold is as the same as paper money, increase of trade in the implementation of Gold Dinar and the acceptance of others to use gold Dinar. Findings 4: Challenges that have to be encountered in the implementation of gold Dinar. Survey results based on the figure 2 below; show the obstacles and hindrances that the respondents might face in the implementation of gold Dinar, which ranked as follows: 1. The willingness of other to accept gold Dinar 36.9 percent 2. Comfortable with Euro, Dollar and other currency 18.8 percent 3. Lack of Will Power 13.3 percent 4. Scarcity of Gold 13.3 percent 5. Gold quality assurance 8.3 percent 6. Security issues 6.0 percent 7. Fraud 3.4 percent Figure 2. The Major Hindrance of Implementing Gold Dinar as a Medium of Exchange 8 From the result it is found that the respondents are skeptical about the willingness of others to accept gold as a medium of exchange in performing daily transactions. About 18.8 percent respondents are comfortable with Euro, Dollar and the existing currencies. The scarcity of gold has an impact to the implementation of gold Dinar. It is interesting to find out that gold quality assurance, security issues and fraud comprises only 17.7 percent from the total respondents. Discussion There are some discussions that need further exploration according to the finding results. Firstly, the uncertainty of many respondents whether the gold dinar could function as money even though it is acceptable and logic. This finding is reflected by the real example that no countries nowadays are using gold dinar as a medium of exchange, especially using gold dinar as a function of payment transaction that replace the fiat money. One needs to make some great innovations towards the using of gold dinar. Then we could see the performance of gold dinar compared to fiat money. This will then enhance the public confidence to implement gold dinar to replace fiat money functions. Nevertheless, many respondents seem to agree that the uses of gold dinar are acceptable and the usage of gold dinar will reduce exchange rate risk. The implementation of gold dinar will increase a trade. It is the role of the government to further decides whether or not to use gold dinar instead of fiat money. The main related issue of gold dinar however, lies in whether the use of gold dinar as a medium of exchange could remove the uncertainty. Again it is pointed out that the use of gold dinar is depending on the willingness of the government to build the innovations towards a better economic condition. Secondly, the implementation of Gold dinar depends on the knowledge and level of educations. The interest system has gone too far now. Most people seem to have a better understanding about this system. The government needs to rebalance the system by ‘reintroducing’ the gold dinar system. This is the first step that needs to be done before we could further implement gold dinar. Public whom equipped with well gold dinar education, will have positive perception about this system, thus will create balance situation. Universities as a knowledge warehouse play a major role in educating our next generation. The universities’ curriculum should incorporate gold dinar as one the integral subjects in economics, finance, accounting and business management. The government could then setup gold dinar side by side with fiat money and eventually replace fiat money once gold dinar is widely used. If the government takes action to introduce the gold dinar, then people will begin to aware the willingness of government about this system. This will lead to a better perception and knowledge about gold dinar. Thirdly, the issue about the scarcity of gold remains low compared to the issue of the willingness of others to accept gold dinar. It is the fact that with fiat money the government could increase money supply almost without limit but not with gold dinar system. Again, the issue remains on the willingness of the government or the acceptance of gold dinar not in the scarcity of gold. However the limitation of the gold reserves is acceptable. The strategy of implementation of gold dinar remains on the real conditions of the country. Finally, we already know that gold has a low volatile price compared to the currency. This will lead to a certain conditions to be expected by the agent of economics. Better expectations that lead to a better productivity and efficiency. The remain issue is not only about injustice, poverty or the economic issue such as inflation, uncertainty, unemployment, but more to the issue of productivity and efficiency. However we need to conduct more research on the implementation of gold dinar using a specific sample (e.g. economic agent such as government, business community). We also need to explore the perception of economist about this issue. 9 REFERENCE Ahamed Kameel Mydin Meera.(2002) The Islamic Gold Dinar. Kuala Lumpur: Pelanduk Publications. Ahamed Kameel Mydin Meera (2004). The Theft of Nations. Returning to Gold. Kuala Lumpur: Pelanduk Publications. Amir Hassan, Umar Azmon. (2003 July). Dynamics of The Dinar And Its Inevitable Return. Proceedings of the International Convention on Gold Dinar as An Alternative International Currency, PWTC, Kuala Lumpur. Evans, Abdelhamid. (2003 July). The Gold Dinar - A Platform For Unity. Proceedings of the International Convention on Gold Dinar as An Alternative International Currency, PWTC, Kuala Lumpur. Hifzur Rab (2002) Problems Created By Fiat Money Gold Dinar And Other Alternatives Meera,A.K.Mydin ed,(2002), Proceedings of the International Conference on Stable and Just Global Monetary System., IIUM, Kuala Lumpur. Mohamed Nor Yakcop (2002 October). The Role Of Central Banks In The Implementation Of The Gold Dinar Proposal. Proceedings of the International Seminar of Gold Dinar In Multilateral Trades, Institute of Islamic Understanding Malaysia, Kuala Lumpur. Nuradli Ridzwan Shah Mohd Dali , Bakhtiar Al-Razi & Hanifah Abdul Hamid. (2003 December) Gold Dinar. Using Bilateral Payment Arrangement System or Electronic Payment System. Proceedings of the Student Conference on Research and Development. Universiti Tenaga Nasional, Bangi, Selangor Nuradli Ridzwan Shah Mohd Dali , Hanifah Abdul Hamid & Azwari Kamaruddin. (2003 December) The Level of Acceptance on the Implementation of Gold Dinar Within MSC Companies. Proceedings of the Student Conference on Research and Development. Universiti Tenaga Nasional, Bangi, Selangor. Nuradli Ridzwan Shah Mohd Dali , Norhayati Mat Hussin & Abu Bakar Yusof (2002) The Implementation of Gold Dinar. Is It The End of Speculative Measures? Journal of Economic Cooperation SESTRCIC, Ankara Turkey. 23(3), 71-84. Nuradli Ridzwan Shah Mohd Dali, Hanifah Abdul Hamid & Bakhtiar AL-Razi. (2004) The Mechanism of Gold Dinar. Kuala Lumpur AS Nordeen . Nuradli Ridzwan Shah Mohd Dali , Hanifah Abdul Hamid, Mohd Zainal Munshid Harun & Faizah Khalid. (2004 February) Islamic E-Commerce. Its Theoretical Framework And Challenges For Islamic Business. Proceedings of the Knowledge Management of International Conference & Exhibition (KMICE). Evergreen Laurel Hotel, Penang & Covention Center, UUM Kedah. Nuradli Ridzwan Shah Mohd Dali & Norhayati Mat Husin. (2004a) Gold Dinar: The Impacts On The Economic Social Order. Proceedings of the Colloquium on Economic and Business Issues, Faculty of Business Management University Technology Mara, Annex Dewan Sri Budiman University Technology Mara, Shah Alam, Selangor. Nuradli Ridzwan Shah Mohd Dali & Norhayati Mat Husin. (2004b) Gold Dinar. The Impacts On Consumerism Towards Creating A New Islamic Economy. Proceedings of the Second Economics Colloquium, Department of Economics University of Technology Mara, Johor Branch at Golden Legacy Hotel, Malacca Rais Umar Ibrahim Vadillo. (1991) The End of Economics. Granada. Madinah Press. Rais Umar Ibrahim Vadillo. (2002) The Return of The Islamic Gold Dinar. Granada New Edition, Madinah Press. Tarek El Diwany. (1997) The Problem With Interest. UK. TA-HA Publishers. The authors would like to apologize for not including the appendices in the paper due to the length constraints. Alternatively, Appendix 1 – 5 could be downloaded from the author’s website at http://www.geocities.com/mohdddalins/research/html or by emailing the author at [email protected] 10
© Copyright 2025 Paperzz