Isis to introduce its own currency, the Islamic dinar

[sree45]

Islamic State says its leader has ordered that the organisation start minting gold, silver and copper coins for its own currency, the Islamic dinar.

A website affiliated with the militant group said late on Thursday that its leader, Abu Bakr al-Baghdadi, has instructed his followers to start minting the coins to “change the tyrannical monetary system” modelled on western economies that has “enslaved Muslims”.

The posting says the order was approved by the group’s Shura council, an advisory board.

After seizing large swaths of Iraqi and Syrian territory earlier this year, Isis proclaimed a caliphate, or Islamic empire, on lands under its control.

The group has also sought to implement its harsh interpretation of Islamic law, or Sharia, and Baghdadi has proclaimed himself the caliph.

Isis to introduce its own currency, the Islamic dinar | World news | The Guardian

 

[he-man]

 

[sree45]

It is a very clever move. Gold and silver are easily convertible and can be used as payment to buy weapons & supplies

 

[gowda]

Lol those asshole people know anything about about economy miniting coin

 

[Derolo]

How long before this is legal tender in Kerala?

 

[SQ8]

This is interesting, how will they exact amounts on gold/silver based on current inflation rates?
But they are going to get a MUCH wider audience with these moves that try to mirror 7th Century practices. Because to the many nutcases out there with dreams of pan-islamism whilst riding a black horse.. this is heaven.

 

[Bas_kya_bhai]

isis will make money first then they will make their own weapons and vehicles. they don't like to be enslaved to anyone for anything.

 

[temp1994]

This is interesting, how will they exact amounts on gold/silver based on current inflation rates?
But they are going to get a MUCH wider audience with these moves that try to mirror 7th Century practices. Because to the many nutcases out there with dreams of pan-islamism whilst riding a black horse.. this is heaven.

Increase in gold prices correlate with inflation rate. Gold is inflation proof currency.

The problem with metal based currency is that there is not enough of it to run a proper economic system. Gold standard use to have wide fluctuations since there was not enough depth in gold based currency to handle volume of international trade.

If Khalif use Islamic dinar to buy anything except camel and sheep, whole economic system would collapse as there would be not enough money to go around ( and it could not be printed ).

 

[Levina]

Abu Bakr al-Baghdadi, has instructed his followers to start minting the coins to “change the tyrannical monetary system” modelled on western economies that has “enslaved Muslims”.

Does he give orders from his death bed?

 

[ryzvonusef]

See here is what will happen.

Their currency will be Gold, Silver, Copper right?

So they will set up an system, something like 1 Gold Dinar = 16 Silver Dirhams = 256 Copper Piasters, or something like that.

The MOMENT there is a change in world metal market, the exchange rate will fail.

So let's say that the market rate for Gold and silver indicate that a gold dinar coin should be worth 12 silver dirham coins, weight wise.

There will be a shortage of silver coins and a surplus of gold coins, as people keep using the exchange rate to convert their gold into silver using official rate, melt it and sell it to earn a difference.

This is why such systems are unstable and open to manipulation.

This is a simplistic summary, but you get the idea.

 

[asquare]

This crap about fiat money being a scam appeals to way too many people. Caliph Baghdadi and most Tea Party Republicans obviously got their economics degrees from the same university.

If ISIS intends to export its oil on a large scale (if it doesn't loose any more refineries, that is), this is a bit silly. The currency received for the oil will not be valid legal tender in the Caliphate- what will they do with it in the long term? They can't keep using it to buy weapons forever. Of course, this is all speculative- they aren't likely to last another six months.

 

[SQ8]

If Khalif use Islamic dinar to buy anything except camel and sheep, whole economic system would collapse as there would be not enough money to go around ( and it could not be printed ).

And that is where I wished to lead to.

 

[osama zafar]

Damn what will its worth be?

 

[WAJsal]

genius minds are behind ISIS no doubt

 

[Ar_dakhil]

It is a big step forward in Modern economy. They are neglecting every aspect of Modernism. Even challenged modern System of governing, economy, Nation States.. wow