BANKING - The Gold Dinar is Gaining Ground

Harsh criticisms of Islam and Muslims are becoming increasingly common in Western media, but one area they continue to command respect is in the financial sector, especially among Austrian economists.

In the wake of a mortgage melt down, a recession and unprecedented national debt many economists observed that Islamic finance, specifically its prohibition on interest, has shielded many American Muslims from economic crisis.

Now, a state in Malaysia is taking it one step further, by issuing an Islamic currency which they believe will protect consumers from the usury of inflation and market manipulation inherent to a debt based paper currency.

BANKING - Islamic gold dinar gains ground in Malaysia

KUALA LUMPUR: Malaysians are embracing gold dinars which were introduced last month by the northern state of Kelantan to promote usage of Islamic currency as an alternative to paper money, an official said yesterday.

The gold coins and silver dirhams were introduced in early August by the Islamic opposition party PAS which rules Kelantan state to coincide with the start of the Muslim holy fasting month of Ramadan.