Why Gold Dinar in International Trade as Medium of Exchange: Descriptive Analysis of History of Gold Money, Trends, Perspectives and Implications

This paper argues certain perspectives of using Gold Dinar in bilateral or multilateral exchange between any nations worldwide. It is to show stability and security of the trades where no one is negatively affected by fluctuations if merchandises were exchanged in a particular currency. Globalization and advancement in IT had a huge impact on the world’s economy in general, and many nations suffer from it while others become richer and richer. Therefore it is urged to find a better solution for the present and the future generations. It is obvious that something is not compatible in all those things. In recent times many scientists and Islamic scholars stress on importance of gold standard and Gold Dinar as a medium of exchange which a few countries have already introduced. It is the prime time where all Islamic scholars, economists, professors and any other contributors should be involved to come up with the best alternative to current fiat money. After the Malaysian and Indonesian crises in 1997-98 it indeed has happened that many of the aforementioned are involved to search the way out of this turbulent economic era. In this regard, we will try to explain fundamentals of Gold Dinar or gold money since the ancient time where exchange was either in dinar (gold) or dirham (silver). In addition it will be shown possible implications whether are permanent or temporary issues in international trade. Others, like some statistical data will be introduced throughout the history until today. This paper is divided into several parts like introduction, historical background of the gold, statistical facts of the gold money/Gold Dinar, fiat money in brief, benefits and disadvantages of Gold Dinar as well as fiat money, limitations and further research and conclusion. Keywords: gold, Gold Dinar, silver, dirham, international trade, history, bilateral trade, multilateral trade, currency, nations