Euros as a settlement currency

[/ dave /]

Steven wrote:

> Further, I've heard that the Saudi's are planning to introduce a gold
> coin (Dinar)later this year while also playing with the idea of settling
> oil payments in gold.
> 
> All of this has to have the masters of the US fiat currency quite
> concerned about USD hegemony.  If the world doesn't continue to trade in
> USD's, then how in the hell are the 'string pullers' supposed to finance
> all this debt?

Islamic Gold Dinar Will Minimize Dependency on U.S. Dollar

By Khaled Hanafi, IOL staff

CAIRO, January 8 (IslamOnline) – Malaysia will start using the Islamic 
gold dinar starting mid 2003 in its foreign trade section with some 
countries replacing the U.S. dollar in a first step move toward unifying 
the currency used in commercial dealings between Islamic countries.

The success of this idea, according to several western newspapers, may 
lead to minimizing the U.S. dollar hegemony as an intermediate tool in 
commercial dealings in the world.

The idea was adopted by Malaysian Prime Minister Mahathir Mohamad who 
conducted bilateral talks during the year 2002 with several Islamic 
countries, including Bahrain, Libya, Morocco and Iran, to convince them 
of using the Islamic dinar as a way of payment in their commercial 
dealings with Malaysia.

This move is considered from one side a way to recall a currency related 
to the history of Muslims and their monetary heritage since the time of 
Prophet Muhammad (peace be upon him), and from the other side, the 
ability to find the Islamic alternative to the dollar at a time the 
calls to boycott all what is labeled as American starting from goods to 
currency, are intensified.

The idea of the Islamic gold dinar belongs to Professor Omar Ibrahim 
Fadillo, founder of the Morabeteen International Organization founded in 
1983 in South Africa where it is widely known as well as in Europe.

The organization believes that the unity of the Islamic world can not be 
achieved except through the unification on the economic level. It also 
calls for the establishment of a united Islamic market using one 
currency which is the gold Islamic dinar used by the Morabeteen members, 
hoping it will replace the U.S. dollar.

“The idea of the Islamic gold dinar aims at minimizing the hegemony of 
the U.S. dollar and to use the gold once again as an international 
currency because the value of the paper currencies is in continuous 
fluctuation unlike the stable gold currency which preserve its value 
through the value of the metal itself.

The system is built on the idea that the Islamic governments keep the 
gold in a central bank and use it in settling their commercial dealings 
instead of depending on foreign fund markets and foreign financial 
corporations.

(...)

http://www.islamonline.net/english/news/2003-01/08/article08.shtml

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/  dave  /