1. PROBLEM STATEMENT
The value of the US dollar is decline continuously, quickly and by very much as compared to the
gold dinar value (Mahathir, Bernama). Because of that, US dollar is not applicable anymore to
refer as a world main current currency. Therefore it needs to be replaced by other currency that
more stable and have high reliability. As an alternative, the price of gold Dinar is more stable
and difficult to fall make it suitable to be used as the main current medium of exchange or as a
universal currency (Mahathir, Bernama).
At least, gold Dinar should become the main currency among Muslim countries. If there are
several communities in this world that created their own community currency such as the Local
Exchange Trading Scheme (LETS) in United Kingdom, Time Bank in United States, Humboldt
Exchange Community Currency in Canada and even Barter Trade System in Volos, Greece
(Sakiinah and Zainal, 2012) it is possible for the Muslim countries to create its own currency.
Malaysia is already in stage of promoting the usage of Gold Dinar as a payment settlement in
international trade as a platform of unity between OIC countries (Nuradli, Fidlizan and
Muhammad Firdaus in journal of The Gold Dinar Wipe Out; The Impacts to the Flexible Model)
Actually the idea for all Muslim countries to have its own currency is not new. Since year 2000,
after the Asian economic crisis occurred in 1997 our former Prime Minister Dato Seri Dr.
Mahathir Mohamad representing Malaysia in OIC conference has expressed his interest to have
a universal currency (gold Dinar) that could help unite Muslim countries (Abu, Nuradli and
Norhayati, 2002).
Unfortunately, the idea of gold Dinar as an international trade currency among countries in OIC
which was supposed to be implemented nine (9) years ago were not implemented due to
lacking in will power (Nuradli, Factors Contributing To The Acceptance Of Gold Dinar As A
Medium Of Exchange: A Revisit). Moreover, there were an argument regarding the credibility of
gold Dinar in solving all the ills of modern economies such as rampant inflation, credit crunches,
stagnation and unemployment (Cizakca, 2010). The historical data that proved the stability of
gold dinar currency is not enough to gain a worldwide acceptance. Therefore, the best way that
should be implemented is to form a currency union, adoption of a single currency by a bunch of
countries (Muhammad Anwar in Evolution of Euro: Lessons For Muslim Countries)
Lately the re-introduction to gold Dinar currency has a comeback with an increasing amount of
publications, conferences, and even a campaign (Cizakca, 2010) to promote the gold Dinar as a

2. universal currency. The effort done by state of Kelantan in Malaysia to launched the syariah
currency in 2010 by the state minister, Dato’ Nik Abdul Aziz Nik Mat (Mohd Rizli Fitri, 2012) is a
good start to discover the level of acceptance towards the implementation of gold Dinar
currency among the Muslim in Malaysia. As a first state in Malaysia who makes Dinar and
Dirham a legal tender in the market, Kelantan received very good respond not only among the
Kelantanese but also from people outside the state (Mohd Rizli Fitri, 2012).
Despite of the stability value of gold Dinar currency, Muslim also could gain benefit from the
Islamic financial system to help poor Islamic nations and strengthen the unity. As said by Dr.
Mahathir “We use Islamic finance to invest in the poor Islamic countries and help make them
rich” (Mahathir, Bernama). In addition gold Dinar also could protect Muslim countries from
exposure of speculator menace since gold Dinar is one in the world.
This research is aimed to discover the factors contributing to the acceptance of gold Dinar as a
Muslim currency in Kuala Lumpur. The factors could be a Shariah Compliance, Reliability or
Performance of the gold Dinar.