Advantages Of Gold Dinar System

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Gold dinar system is one of the tools that can be recognised as a good indicator in international trade. It is also can be determine as a valued metal because people over the world always demanding over it. For my opinion regarding to this system, I strongly believe that the gold dinar system will benefiting us over the world. As for Malaysia that has been categorised as a Muslim country, then it is the best position to prove the efficiency of the system. Since we have been used fiat money in our system for today, the currency of the paper actually does not have any intrinsic value. Thus, the currency that we have nowadays, does not stable but eventually it is also fluctuated in its value unpredictably. By having this system, it is actually a great solution for the current world financial …show more content…

The possibility of the value that is fluctuated by the gold must be only by little percentage whether it is up or down. So, it is not attainable to devalue the gold by higher percentage. From this level, the gold dinar currency can be known as a good currency in international trade between the nations. If we have been using gold as our currencies against the traded products in the market, then there will be no such a problem regarding to the exchange rate. The using of the gold dinar is not intended to be used as a currency for our daily transaction but we can be used this for the national currencies. I found that this system have a good combination of few factors that will boost from any economic turbulence thus gives a lot of opportunity towards business sector in the international trade. By having the gold dinar system, the trades of bilateral and multilateral among the other countries can be straightening out thereby to eradicate the foreign exchange risk. For this mode, gold is to be utilized as a unit of account and a medium of trade rather than the national monetary

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