The Restoration of the Use of Our Money

بسم الله الرحمن الرحيم

The Restoration of the Use of Our Money

Speech of YB Senator Mumtaz binti Md. Nawi on the 25th Aug 2011

HARI ZAKAT, KOTA BHARU, KELANTAN

1.- Alhamdulillah. Alhamdulillah, the Lord the World, the King of the Day of Judgement. It is in His Name that we have gathered here today for a great and noble purpose: To restore a Sunnah that had been lost, that is, the payment of Zakat using Shariah currency.

2.- This is a great event that will echo throughout the years to come and throughout all Muslim lands. It is great because anything to do with restoring a Sunnah is great. It is great because the Zakat is an important affair to all the muminun. It is great because the introduction of the Shariah currency into our daily life is the greatest political event of the Muslims of this century.

3.- All this will happen today. Today we start a new chapter in the modern history of Islam. A chapter in which we, the people of Kelantan, have decided to pay Zakat using OUR money. As it was in the past and it will be in the future.

4.- Our Money, indeed, because the Dinar and the Dirham are the currency mentioned by Allah, subhana wa ta’ala, in Qur’an. Our Money, because the gold and silver coins have been “our money” from the beginning of Islam until the fall of the Khalifate. Our Money, because the Dinar and the Dirham are the means to calculate the nisab of Zakat. Our Money, because they are the measurement in Islamic legal issues regarding hudud.

5.- Our Money is clean from inflation. It was one year ago on the last 12th of August, that the Government of Kelantan through its State Company, Kelantan Golden Trade, launched officially the new coins. At that time the Gold Dinar was 581 Malaysian Ringgit. One year later, today’s price of the Gold Dinar is 811 Malaysian Ringgit. The Silver Dirham was 13 Ringgit, now is 25. This means a gain of 40% in Gold and 92% in Silver. As a result the people in Kelantan who bought the Shariah coins last year are richer now. Everyone else holding Malaysian Ringgit has been impoverished. Because the Malaysian Ringgit keeps losing value. The Shariah currency gains value and will continue gaining value against paper currencies.

6.- Gold and Silver are the same in Malaysia, as in Indonesia, as in Thailand, as in any country in the world. Gold and Silver are the historical currency of the world. Their worth is endorsed by 5,000 years of human history. The Dinar and the Dirham will unify the Muslim nation: One Ummah, One currency. This is the motto of those of us who want to see the Shariah currency in circulation amongst the Muslims.

7.- Our gold and silver coins will end the unacceptable supremacy of the US dollar as world currency while returning justice to the world. Unlike with the US dollar, there is no monopoly in the production of gold or silver, and their yearly production (2.6 thousand tons) hardly reaches 1.5% of the present stock in circulation. Gold and silver will eventually replace the present international monetary system, enhance international trading and allow a more just distribution of the wealth in the world. On this basis, we endorse the recent call by the Muslim government of Kazakhstan for the introduction of a gold currency to replace the US dollar as world currency.

8.- Some people question whether there is enough gold in the world to be a world currency. The answer is simple and it was already answered by David Ricardo in the XIX century: “Any commodity can serve as world currency independently of their total amount in circulation. If demand increases at its present price, the price of that commodity will rise to accommodate the total demand however big”. That is to say, as demand continues to increase its value will continue to grow to accommodate demand. It is in this light, that people have calculated that if we return to gold standard it is expected that the price of gold will go anywhere between 10,000 to 30,000 USD per ounce. In addition, silver will also continue to rise in price as a support to gold.

9.- Some people also think that gold is subject to speculative forces and therefore its price could be manipulated. Like every commodity the price of gold and silver fluctuates. This is normal and healthy. We know that the price of Dinar and Dirham fluctuated even in the early days of Islam. This is not a problem. This is how it should be. What those people who are concern with speculators ignore is that the large stocks of gold are not in the hands of large investors or even central banks. By the end of 2010 there were an estimated 165,000 tons of gold in the world of which 50% is in the form of jewelry, 18% is owned by central banks and the IMF, 18% is owned by private investors, 12% is in some form of industrial use (such as dentistry, electronics, etc) and 2% is unaccounted for. In fact the largest holders of gold in the world are… Indian ladies. If we were to be worried about a large fluctuation of gold, we should be worried about the ladies of India selling their gold. Yet, what it seems is that they are buying more, rather than selling.

10 – In the long term, gold is the most stable currency the world has ever seen. A 400 years’ study on the price of gold against a basket of commodities conducted by Prof Roy Jastram in his book “The Golden Constant” reveals that gold is remarkably stable despite wars, crisis and the passing of time. A chicken at the time of the Prophet cost one dirham, today you can buy one chicken in most parts of the  world for approximately one dirham …if not two. But if the comparison is made against any other paper currency, both gold and silver, outperforms any one including the mighty US dollar. We can simply affirm that gold and silver are the most stable currencies that we could have.

11.- Most of the things I have just mentioned can be learned by reading Gold Standard literature. Yet, there are things that we stand for that go beyond the Gold Standard. The Gold Standard is a monetary model that is based on paper money partially backed by gold. Our position is more advanced. We advocate gold and silver coins, freely owned and circulated by people. We advocate absolute freedom: freedom from the monopoly of central banks and also freedom from banking and political systems.

12.- We advocate the freedom that Allah has granted us in the Qur’an: “Trade with mutual consent” Money is part of trading. Money also must be traded according to the rule of mutual consent. Impositions or monopolies are not accepted in Islam. We advocate gold and silver because we advocate freedom. This means that we do not believe that the government has any right to impose, even gold. We believe the government should be the guarantor of freedom. That is the Islamic Way.

13.- But what has gathered here today is more than just the gold and silver coins, it is the payment of Zakat using gold and silver coins. Zakat is one of the pillars of Islam. Zakat must be paid in ‘ayn, and not in dayn. ‘Ayn in Arabic refers to anything tangible, a commodity present. Dayn in Arabic refers to any promissory note, or debt or liability. Zakat must be paid in ‘ayn. This is a fact. ‘Ayn is also the name given to gold and silver coins, what we normally call ‘cash’.

14.- For too long, we have accepted that Zakat could be paid with Ringgit. Yet we do not know what a Ringgit is. If you go to Bank Negara with a bill of “One Ringgit” and you ask the bank, pay me the Ringgit. Bank Negara will respond there is nothing to pay. If there is nothing to pay, what is a Ringgit? The answer is a legal paper which value is entirely based on the compulsion of the State. The Ringgit is a fiat currency. And as such, its only value that can be used for Zakat is its value as ‘ayn, that is, its value as paper.

15.- This judgment is endorsed by Shaykh ‘Illish. Shaykh ‘Illish, was one of the most learned Scholars of Islam from al-Azhar of Egypt during the Khalifate, he was the last Ottoman Scholar in Islam who wrote on the matter of paper money. Someone brought the newly introduced paper money by the British in Egypt and asked him: can you pay zakat with this? He answered: “Yes, you can but only for his value as ‘ayn’. That is, the only thing that has value of paper money regarding the payment of zakat is its value as PAPER.

16.- Those scholars with discrimination today admit that we use paper money as a matter of darurah. Darurah, as you know, means exceptionality in Islam. It is an extreme circumstance by which an exception to what is forbidden must be made. Such as for example, being in danger of losing your life or the impossibility to do what is halal. In those extreme circumstance, the Scholars agree that something is normally not accepted can be accepted, …but only temporarily. Darurah is temporal, it cannot be treated as a continuous exception. Thus, some scholars argue that we have to pay Zakat with paper money because that is the ONLY  currency that there is. And that was true. But not today.

17.- Today, by showing the people that we can use the Dinar and the Dirham…Today we FINISH DARURAH. Today, we the people of Kelantan, we show the Muslim world, that we can use the Dinar and Dirham. Today we show the world that IT CAN BE DONE.

18.- The significance of the act that we celebrate today will echo throughout history and throughout the Muslim world. Today we are going to pay Zakat with Dinar and Dirham. To achieve this, the Government of Kelantan first allowed the minting of the coins, and second, it has encouraged more than 1,000 shops throughout the State to accept Dinars and Dirhams. The coins that we will pay today will not have to be exchanged for paper money they could be used in any of the thousand shops that there is in our State and the other thousand that exist throughout Malaysia with the sticker “We Accept Dinar and Dirham”. It is this network of shops that collaborate with us which are making this event possible.

19.- These are the reasons why we are making history today. We believe that we are opening a new chapter in the history of Islam. We believe the whole of Malaysia will join us in this affair. We believe the whole Muslim world will join us in this affair. The payment of Zakat using the Shariah currency will establish the coins as means of payment. And that is a second achievement.

20.- If we obey Allah, we will succeed. If we follow the way of the kuffar we will fail. Our decision is therefore clear. We will obey Allah. We will establish the Dinar and Dirham as our Shariah currency and we will pay Zakat using Dinar and Dirham. This will in turn be a victory of Islam versus Riba. This will in turn be a victory for the Ummah.

21.- Let us rejoice our religion. Let us pay Zakat using the Shariah currency as it used to be done by the Sahaba. Victory belongs to Allah. He is the Light of the Heavens and the Earth. We are just His servants. In the Name of Allah, the Merciful, the Magnificent: Let the event began.

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Published in: on August 27, 2011 at 18:51  Leave a Comment  

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