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THE ROLE OF GOLD AND SILVER IN THE ISLAMIC MONETARY SYSTEM Asty Amanda; Elvira Mey Roza; Tongku Harapan Martua; Mahmud Yunus
International Conference on Health Science, Green Economics, Educational Review and Technology Vol. 5 No. 1: IHERT (2023) FIRST ISSUE: International Conference on Health Science, Green Economics,
Publisher : Universitas Efarina

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54443/ihert.v5i1.481

Abstract

The Islamic monetary system possesses distinct characteristics that differentiate it from conventional systems, particularly in its reliance on real commodities as a medium of exchange and store of value. Gold (dinar) and silver (dirham) have historically served as the primary instruments in the Islamic monetary framework, from the time of Prophet Muhammad (PBUH) through the era of the Rightly Guided Caliphs. This article explores the strategic role of gold and silver in maintaining economic stability, preventing inflation, and fostering a just financial system. Unlike fiat currencies, whose value is often influenced by debt and artificial monetary policies, gold and silver derive their worth from intrinsic value. This study employs a qualitative approach through literature review of classical and contemporary sources. The findings indicate that using gold and silver as currency offers resilience against global economic fluctuations, minimizes value volatility, and enhances trust in transactions. Reintroducing the dinar-dirham system is viewed as a potential solution to current monetary crises and global financial inequality, although several technical and structural challenges must be addressed before practical implementation can be realized.
Co-Authors Aan Nisbad Lutfiana Abd. Rasyid Syamsuri Achmad Muzayyin Dwi Fernanda Adi Pranoto Ahmad Abdullah Ahmad Muttaqin Darussalam Ainur Rofiq Sofa Akhmad Dani Setyawan Akhmad Rizani Aldhika Nugraha Wirama Amalya Cantika Sarie Amri Biskhah Satria Pradana Andre Andarianto Andriyan Anggit Aruwiyantoko Aryan Eka Prastya Nugraha, Aryan Eka Prastya Asri Putri Dwi Gita Andini Asty Amanda Auda Nuril Z Berliana Dwi Nandita Sandy Dedi Sulistyono Dian Eka Chandra Wardhana Dian Wahyuningsih Dien Oktaviandri Islamiati Dwi Prastiyo Hadi, Dwi Prastiyo DZAKY MUHAMMAD Elvira Mey Roza Engga Dallion EW Erna Apriliani Fahim, Kistosil Gilang Rizaldi Hany Herlin Tiur Lumbantoruan Hariyanto Hariyanto Hartati Eko Wardani HERI PURNAMA PRIBADI Heri Purnama Pribadi I GUSTI NGURAH RAI USADHA I Nengah Sudjana Irmantara Subagio Istiyaningsih Istiyaningsih Kistosil Fahim Linda Zakiah Lukman Zicky Metravia, Monika Moch. Ian Brilian Assyaumin Mochamad Ilham Erdik Pradana Mohamad Ilham Dwi F Mohammad Firman Sholikhin Monica Cyma Angela Handari Najma Farha Tazkia Nidya Chandra Utami Nina Nurhasanah, Nina Numero Uno Amaranaya Berdhika Nuris Mahendra Putra Olivia Andiana Qristin violinda Raden Arfin Kusuma Rias Gesang Kinanti Riko Wahyu Prasetiyo Riyanto Riyanto Sadjidon Sadjidon Sadjidon Saichudin Saichudin Saichudin Saichudin Sapto Adi Sarwit Sarwono Shafa Adinda Rayhan Silviana Maya P Slamet Raharjo Sugiarto, Dinta Suharmadi Sujito Sujito Sunarsini Sunarsini Sunarsini Supriyadi Supriyadi Suwarno Widodo Taofik Tongku Harapan Martua Wahyu Fajar Arifin Wahyu Fajar Arifin Waliyansyah, Rahmat Robi Yuan Hardiyansyah