Today, part of the world financiers come to the conclusion that we must return to the gold standard. This is the name of the monetary system when the currencies of states are tied to gold. They want to "cure" the global crisis with this idea. Economists consider this proposal differently: some of them consider the golden dinar an unpromising idea, others try to implement it.
Theoretical background
The idea of creating a currency of Muslim countries that would be supported by gold is not new. It was mentioned by the Qur'an: it gives recommendations to Muslims to resort to using this money during transactions, and as savings, and for paying taxes.
The Qur'an forbids usury, and most of the followers of this scripture believe that paper banknotes are not money. This led to the fact that Islamic banking is a special system where the Islamic Development Bank has the leading role. It was created by 55 eastern countries, on the territory of which the main raw materials of the planet are concentrated. The economy of these Muslim states is growing rapidly, but it is very dependent on the dollar. If a gold dinar were introduced, the dependence would weaken. The dinar would be higher than the value of one dollar. That is, in this case, in addition to the economic, there is also a political background.
Opponents and supporters of the gold standard
Some economists (opponents) believe that there is a limited supply of gold in the world. And if the volume of the gold standard is equal to the stock of this metal, this will restrain production growth. The level of production of "yellow" metal is below the pace of the economy, and its reserves are unevenly distributed around the world. The movement of capital, on the contrary, is much freer than before.
Supporters, however, believe that the gold currency will help stabilize the economy and reduce inflation, because the state in this case will not, at its will, issue notes that are not backed by precious metals.
Concept of gold standard
The gold standard is called the monetary system, when the limited amount of gold is the main means of settlement. In this case, a guarantee is given that the currency is exchanged for the same amount of gold. For settlements with each other, states establish an exchange rate calculated on the ratio of their national currencies to gold (to one unit of weight).
The origins of the standard
It is known about the existence of several types of gold standard:
- The first is a classic (gold coin): the monetary system was based on gold coins. Along with this, banknotes were issued, which were exchanged for coins at the established rate written on these banknotes. This system worked until World War I began.
- Then came the standard of gold bullion. Banknotes could be exchanged for a bar of gold weighing 12.5 kg. The ruble to ruble exchange rate was not yet precisely determined.
- The third type: gold exchange. Arose at the end of World War II. Its foundations were laid in Bretton Woods: America pledged to ensure the exchange of gold at the rate of $ 35 for 31.1035 grams (troy ounce). Only states, using their central banks, had the right to exchange American currency for gold. In August 1971, these operations were suspended due to discrepancy between the real value of the US currency regarding gold. A year later, this standard was completely abolished.
Revival attempts
Two decades later, the world again began to talk about the revival of the exchange of currencies for gold. Then they proposed to introduce a gold dinar.
Why exactly the dinar? Most Islamic states export oil and other natural resources. Commodity exchanges around the world are trading in US currency, so countries receive payment for their raw materials in US dollars or in the form of numbers on their accounts. In fact, such numbers are not backed up by anything; as a result, they are very unreliable.
This prompted the eastern countries to take a step to reduce dependence on the dollar. In 2002, it was proposed to introduce the golden Islamic dinar as an international currency. It was not intended to be used in daily calculations. The bottom line - the reserves of this currency would be in the central banks of states that would be participants in this system.
The currency of the Islamic state assumed the use of a netting system. The foundation of the latter is bilateral contracts between the parties to the agreement. This would negate the issue of a lack of gold for issuing coins.
The idea was this: a precious metal was exchanged for natural resources. The main exporters of energy resources are Turkey, the United Arab Emirates, Indonesia, Saudi Arabia, and Malaysia. If a gold dinar were introduced, these countries would greatly benefit, as they would receive up to 20 tons of gold annually.
Despite the freezing of the project in 2003, in one of the states in Malaysia, the dinar was minted - a coin that was declared legal currency along with the national currency. But the federal government did not support such an initiative.
The idea is in the air
In the 1990s, representatives of the Turkish authorities began to insist that the currency of the Islamic state still begin to work. It was proposed that the dinar would become the currency of the Islamic Eight. The Libyan leader Muammar Gaddafi has also repeatedly heard the desire to abandon the European and American currencies in favor of the transition to the Islamic dinar.
Realization
Since that time, the idea of Islamic currency began to be realized. E-dinar Ltd was opened, headquartered in Malaysia.
This company is nothing more than a bank that provides the opportunity to transfer your money into dinars, albeit electronic. The weight of a gold dinar is 4.25 grams of gold. With the help of this bank, funds are transferred to dinars, the necessary settlements are carried out, then you can carry out the reverse conversion.
Accounts are opened for users on a free basis, you just need to register and fill out the form on the site. The vaults of the company contain such a stock of gold bullion that will cover the requirements of all who have electronic dinars. In the first few years, the company registered three hundred thousand accounts opened by customers from all over the world. In addition to the already mentioned E-dinar, the system also has E-Dirham, equal to three grams of silver.
Golden currency spread
The end of 2001 was marked by an official ceremony of putting gold and silver currencies into circulation. Coins are distributed through specially registered companies. In the offshore of the Emirates and Malaysia, a gold dinar is already circulating in circulation.
As expected, the common currency of Islamic states will be introduced before the beginning of 2011. However, this did not happen. The date the gold standard was put into circulation was postponed to the beginning of 2015. But even then this did not happen. As expected, the central bank's head office for this currency will be located in Riyadh, the capital of Saudi Arabia.
Impact on Russia
According to studies, most of the gold reserves are in the United States (about 8.2 thousand tons). Next is Germany (3.4 thousand tons). Then - France and Italy (2.4 and 2.5 thousand tons, respectively).
Talk about the gold dinar reappeared after the crisis in 2008. However, the Russian Federation does not develop this topic, despite the fact that the appearance of such a currency can negatively affect the country's economy. Our Central Bank keeps almost all reserves in American and European currencies. As a result of this, the very appearance and exchange rate of the dinar will have an extremely negative impact on the financial stability of our country.
The whole world is still dependent on the dollar. Along with it is Russia, which holds more than half of its reserves in US currency. To date, no one sees an alternative.
The affairs of the modern world
In mid-2015, the press again began to circulate information that in the territory of one of the Islamic states they again want to introduce gold coins. The price of each will be $ 139.
Most economists agree that this is an attempt to demonstrate the seriousness of intentions. But there is nothing connected with reality there. Experts consider this a disastrous option, because it is supposed to put into circulation money, the cost of which is tightly linked to gold. It turns out that its certain reserves are needed. Returning to the gold dinar is very costly.
On the other hand, the important thing is that paper currency will appear, which will receive reinforcement in gold. Since the volume of trade within the Islamic state is small, a little gold is needed to secure the coins. Then an attempt to revive the dinar is feasible.
Today, anyone can release their own gold dinars, having gold, a 3D printer and a layout that is sent by email to anyone. However, whether it is worth it is not yet completely clear.
The answer of the Russian Federation
Instead of the Russian ruble, they plan to introduce a new currency. Since 2015, the Government of the Russian Federation has been discussing the possibility of the emergence of a new currency, which would replace the Russian ruble in settlements between countries. The dinar to ruble exchange rate today is about 10.7 thousand rubles.
This explains the fact that in 2015 the Central Bank was actively buying gold, since it is with this precious metal that a new type of national currency, the gold ruble, will be supported.
The State Duma wants to change the ruble to another national currency in order to stabilize trading on the international market. To balance the exchange rate and reduce the level of speculation with the ruble between the SCO, EAEU, BRICS member countries, it is proposed to introduce a gold ruble. He will be able to stabilize the national currency during the conversion with the euro and the dollar. It is also expected that this currency will minimize the level of speculative actions with these and other foreign currencies.
According to the deputies, the transition to a new currency will be the beginning of an important period, which in the end will have a favorable effect on the Russian economy. An example is the single currency of European countries.
For the new currency of Russia to appear, it is necessary to amend the Constitution. In addition to the gold ruble, it was proposed to use the yuan as settlements between countries.
As everyone remembers, from the middle of 2014, the ruble exchange rate began to actively fall. The country's president then instructed the government to develop measures to strengthen the national currency, the weakening of which was caused by speculative actions.
Instead of a conclusion
Muammar Gaddafi was the last president who wanted to abandon the American currency as the main currency in payments between countries. He actively worked in this direction - he tried to introduce a gold dinar into circulation. Unfortunately, Gaddafi was not able to realize his ideas.
Gold coins, the price of which will be provided with gold, are likely to lead to the collapse of the economic system of the United States. However, today it’s too early to talk about it: there is still no alternative to the dollar.
For a long time, the US dollar was the main currency in settlements between states. The new millennium was marked by the emergence of a new currency - the euro. The European currency quickly took its place as the Second World War. The appearance of a completely new unit of currency, which will have a different circulation technology and philosophy, will force the “old people” to abandon their leading positions.
Taking into account the ability of Muslim countries to control prices on the world raw materials market, the transition to the golden dinar of Islamic states (members of the Islamic Development Bank) will become a serious threat to the collapse of the prevailing currencies.