1 “Investment from the Islamic Perspective and Mitigating Currency Risk with the Implementation of Gold Dinar”1

Currency risk is one of the major factors contributing to the recent 1997 crisis, which affected the South East Asian countries. Malaysia opted for the capital control while Indonesia and Thailand went for the IMF programs. Mahathir Mohamad, the former Malaysian Prime Minister suggested in Doha, Qatar 2000 during the 9th OIC summit to use Gold Dinar as an international payment settlement in order to avoid the currency risk. This paper is done to analyze the gold prices and exchange rate fluctuations. Besides, the research would determine the relationship between selected currencies and the gold prices to identify if gold could be the optimal currency if it is used as an international payment settlement