Islamic Dinar and 100 Percent Reserve Requirements Monetary System

Abstract

The Gold Dinar/Islamic Dinar is studied as a currency that mobilises financial resources into Shari’ah-compliant ends within a general system approach to complement relations between money, finance, and the real economy. Thus, a 100% Reserve Requirement Monetary System (100% RRMS) is formalized in the context of the gold standard that mobilises resources and stabilizes currency value within the money, finance, and real economy complementary relations. Such complementary relations are established by circular causation on the basis of the Islamic epistemology of unity of knowledge applied to systemic relations. Unity of knowledge as the epistemology ultimately, arises from the unity of the divine law (Tawhid). Upon this episteme, the arguments stand the reasoning and formalism of the Islamic socio-scientific system.

Keywords

• Islamic economics and finance
• monetary economics
• Islamic Dinar
• money and real economy