Gold dinar - a new tool of globalization?


According to the prime minister, if the fluctuations of the Islamic Dinar will be tied to fluctuations in gold prices in the future will be able to avoid the turmoil that occurred in the past. Moreover, the risks of speculation with the new currency, according to him, will be kept to a minimum, which means that international trade will get a fairly stable tool for calculations, little need for hedging. Mahathir Mohamad's plans do not end with the creation of an international currency as a useful tool for the development of international trade. He also proposed to link domestic prices gold standard tied to national currencies <Islamic gold dinar>. Thus, Islamic markets can return to the gold standard, based on the gold dinar as an instrument of payment and reserve currency of the countries that supported the Prime Minister of Malaysia.

In his scenario, the countries participating in the project must build a system of payments clearing pieces of gold, based on the principle of mutual. In this case, it was suggested that the Islamic countries that have already gone through the industrial revolution, must be put into the new information age. <Islam has never been synonymous with conservatism, never denied the development of technology and modernity ", - these words had finished his speech, Mahathir Mohamad, called on the participants of the capital market to develop on-line trading in order to keep up with <New Economy>.

Gold in exchange for energy

Gold in exchange for energy resources - the main purpose of the gold dinar. Progressive views Mahathir Mohamad really address the paradoxical phenomena, which, as we have seen, have a place in the relations between the West and the Islamic world. Analysis of the system of monetary relations, proposed by Prime Malaysia, said the idea of a certain similarity between the gold dinar to what we saw in the late 80's of the last century in Western Europe. The only highlight of the proposal is the gold standard. He's the concern of Western analysts. And we must admit, is not accidental.

Despite the fact that the volume of exports and imports between IDB member countries are small, they will grow, and if the settlement between the two countries would be held on the proposed scheme, it is easy to predict a sharp increase in demand for gold in the world market. Those IDB member countries, which have a negative trade balance with respect to other Islamic countries, will have to spend the oil windfall to resupply gold dinars.

Simply put, countries with limited pieces of gold for transactions between members of the project will be to buy gold in the West and mint dinars. It is not difficult to guess that the gold dinar will settle in the more developed countries in the industrializing, such as in Malaysia.

To refine <script> we turned to data on exports between Member States IDB. The top five export to these countries are: Saudi Arabia, Indonesia, Malaysia, Turkey and the United Arab Emirates, with the first four countries have similar export performance. Another interesting fact is that trade between the countries is not as significant and amounts to about 25%, most of their products are exported to the other 50 Member States IDB.