Money in Islamic Banking System

  • Bedjo Santoso, Khaliq Ahmad, Buerhan Saiti
  • January 2017, Springer Science + Business Media
  • DOI: 10.1007/978-3-319-47937-8_7

The article is explaining alternative currency instead of fiat money prevalent in modern banking

Photo by Dmitry Demidko on Unsplash

Photo by Dmitry Demidko on Unsplash

What is it about?

The idea of revisiting currency and gold dinar in Islamic standpoint is an interesting discourse in the current monetary system. The study examined the historical aspects and supremacy of gold currency and the weakness of fiat money by employing maslahah-mursalah approach. The law of gold as money, money from maqasid Shariah and Siyasah Shariah approaches were discussed.

Why is it important?

The whole banking system due to the presence of fiat money is at the verge of collapse. The deposits and savings including investment of people hard earned money is in danger, if the trust of the market betrayed.


Professor Khaliq Ahmad bin Mohamad
Qassim University

The findings revealed that, money is not limited to gold and silver. However, by application of derive law process from sources of law-making, the ‘hukm’ of gold/silver as money is permissible. Moreover, the review indicated that gold as money serves maslahah while fiat money serves more mafsadah. Backed-up information/communication technology and gold are just employed as measurement of value; they could be implemented in certain communities including cooperatives.

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The following have contributed to this page: Professor Khaliq Ahmad bin Mohamad and BURHAN ULUYOL