Releasing the Dinar from the Dollar
Unless you've avoided reading the news for the past year, you've probably noticed that the value of the US dollar has been plummeting. The dollar's value has fallen so much that it is illegal to melt or export (for the purpose of melting) US coins: the value of a penny or nickel is less than the value of the metal contained in it.
Here in Jordan, the dinar is tied to the dollar: 1 USD = 0.708 JOD, amen. It never changes. The dinar has no valuation independent of the dollar. While the dollar slides against world currencies, so does the dinar. This means that imported items become more expensive. In Jordan, virtually everything is imported. This is at least in part reason for the high rate of inflation.
Would setting up an independent valuation for the dinar help? I really don't understand economics and don't know if that would make things better or worse.
Here in Jordan, the dinar is tied to the dollar: 1 USD = 0.708 JOD, amen. It never changes. The dinar has no valuation independent of the dollar. While the dollar slides against world currencies, so does the dinar. This means that imported items become more expensive. In Jordan, virtually everything is imported. This is at least in part reason for the high rate of inflation.
Would setting up an independent valuation for the dinar help? I really don't understand economics and don't know if that would make things better or worse.
posted by Flicken @ 5:00 AM
4 Comments:
At 1:36 PM ,
UmmFarouq said...
In actuality, it's all paper money whose worth is not backed up by gold, so its value is really just ... an illusion.
It is all pretty scary, honestly, if you think about how much we depend on the illusionary value of the dollar, dinar, Euro, whatever.
Stock up on gold. One day we'll need it.
At 4:46 AM ,
Flicken said...
I totally agree in possessing things that have intrinsic value. I thought I was the only tinfoiler in Amman...
At 6:28 PM ,
Anonymous said...
Assalaamu 'Alaykum Sidi.
The dinar and dirham at the time of the Prophet (Allah bless him and grant him peace) had intrinsic value. I've heard a report of how the USA shifted the economics by removing the intrinsic value and thus they themselves controlling the value of money. I agree with the commenter that paper money is our current dilemma, but our future dilemma is electronic money, where no paper and coins will be used. This is surely going to be used also for control and tracking. I've heard many speaking about bringing the Sunnah money system back, but i truly dont see the reality of that. Maybe thats because of my lack of knowledge on the subject. jamaaludeen
At 6:28 PM ,
Anonymous said...
Assalaamu 'Alaykum Sidi.
The dinar and dirham at the time of the Prophet (Allah bless him and grant him peace) had intrinsic value. I've heard a report of how the USA shifted the economics by removing the intrinsic value and thus they themselves controlling the value of money. I agree with the commenter that paper money is our current dilemma, but our future dilemma is electronic money, where no paper and coins will be used. This is surely going to be used also for control and tracking. I've heard many speaking about bringing the Sunnah money system back, but i truly dont see the reality of that. Maybe thats because of my lack of knowledge on the subject. jamaaludeen
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