The Gold Dinar and the Silver Dirham are being used by Muslims in the year 2012 as a form of payment. As strange as that sounds, Professor Umar Ibrahim Vadillo, the author of The Return of the Gold Dinar has come up with this revolutionary idea and implemented it around the world to solve the problems of dealing with paper money. His call to return to the Islamic monetary system of the Gold Dinar and the Silver Dirham is an interesting and ironically, an innovative, contribution to the field of Islamic finance.
Umar Ibrahim Vadillo, born in 1964, to a catholic family, converted to Islam during his stay at the University of Madrid where he studied Agronomy. On his journey to embracing Islamic knowledge, he became inspired by the Mu’tta of Imam Malik and its economic dimensions and started applying similar ideas to his own work.
Vadillo believes that the present monetary system based on paper currency is ineffective because of the following reasons:
- Paper currency is nothing but a certificate of promise or guarantee that provides for the money equal to the value written on it.
- The ingenious system of paper currency allows governments to manipulate its value according to their agenda.
- The established currencies of the Dollar and the Euro have become so powerful that they manipulate the value of the rest of the world’s currencies. The comparative value of other currencies is a perpetual concern for governments of the world.
- Paper currency allows governments to print currency notes to meet their needs when they are short on money,which causes inflation.
- Fluctuation in the value of currency notes is the main exploiter behind stock exchange, which plays havoc to economies of the world.
- Paper currency is the main factor behind interest and usury, as interest and usury are justified on the ground that they are needed to maintain the value of money, which keeps devaluing it as the time goes by.
Umar Ibrahim proposes that the only solution to the problems mentioned above, is the re establishment of real wealth currency, based on Gold Dinar and Silver Coins. He claims that the dinar and dirham are actual money with worth, they are the real wealth. Their weight determines their value. It is stable money, not subject to devaluation. If the world adopts this system of exchanging in gold and silver, all the problems regarding difference of valuation of deferent currencies will be solved.
Professor Umar Ibrahim Vadillo has given extensive lectures on Islamic Finance issues at various universities around the world. Turkish former prime minister, Dr Erbakan accepted his idea and initiated working on his real wealth model until he was deposed. Late King Hassan II of Morocco started to remodel the system of Zakat, in the light of Umar Ibrahim Vadillo, in his country before his death.
Currently, he is working on the promotion of Islamic real wealth currency in Indonesia and Malaysia. Malaysian province Kelantan has initiated partial dealing in gold and silver. 25% of the government salaries are paid in gold and silver coins, the members of parliament receive 50% of their salaries in Dinars and Dirhams. There are 1500 business units, which accept Dinar and Dirham as medium of exchange. It is an impressive start to Professor Umar Ibrahim Vadillo’s revolution on the world economy.
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