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A Possibly Sharīʿah-Compatible Global Currency to Stabilize the Monetary System عملة عالمية متوافقة مع الشريعة الإسلامية لتحقيق استقرار النظام النقدي

Author

Listed:
  • Bernard Lietaer

    (Professor, and former president of the Electronic Payment System, National Bank of Belgium)

Abstract

The international monetary system is structurally instable. Furthermore, all official currencies in the world today are created through bank debt, and therefore automatically involve interest. A systemic way to improve stability would be to diversify the types of currencies and the agents who create them. The proposed ‘Trade Reference Currency’ would be a global, purely digital currency, fully backed by a standardized basket of the major commodities in world trade such as oil, copper, gold, silver, coffee and cocoa. The storage costs of that basket would be covered by a demurrage fee paid by the bearer of the currency. Because it fits the existing legislations on countertrade (international barter), it would not require any new international agreements to start it. In addition to more stability for the whole system, this currency would also operate counter cyclically to the business cycle, realign financial interest with long-term thinking, and possibly be Sharīʿah-compatible. النظام النقدي الدولي غير مستقر هيكليا إضافة إلى ذلك، جميع العملات الرسمية في العالم اليوم إنما يتم إنشائها من خلال الديون المصرفية، وبالتالي تنطوي تلقائيا على الفائدة (الربا). وتتمثل الطريقة المنهجية لتحسين الاستقرار في تنويع أنواع العملات والوكلاء الذين ينشئونها. و"العملة المرجعية للتجارة" المقترحة ستكون عملة عالمية ورقمية محضة، مدعومة بالكامل بسلة موحدة للسلع الرئيسية في التجارة العالمية مثل النفط والنحاس والذهب والفضة والبن والكاكاو. وستغطى تكاليف تخزين تلك السلة برسوم التأخير التي يدفعها حامل العملة. وبما أنها تتناسب مع القوانين والتشريعات القائمة بشأن التجارة الدولية المتبادلة (المقايضة الدولية)، فإنها لن تتطلب أية اتفاقات دولية جديدة لبدءها. بالإضافة إلى المزيد من الاستقرار للنظام ككل، فإن هذه العملة ستعمل أيضا بشكل دوري عكسي مع دورة الأعمال التجارية. كما ستؤدي أيضا إلى إعادة تنسيق المصالح المالية مع تفكير طويل الأجل، ويمكنها أن تكون متوافقة مع أحكام الشريعة الإسلامية.

Suggested Citation

  • Bernard Lietaer, 2017. "A Possibly Sharīʿah-Compatible Global Currency to Stabilize the Monetary System عملة عالمية متوافقة مع الشريعة الإسلامية لتحقيق استقرار النظام النقدي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(2), pages 47-58, July.
    • Handle: RePEc:abd:kauiea:v:30:y:2017:i:2:no:4:p:47-58
    DOI: 10.4197/Islec.30-2.4
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    References listed on IDEAS

    as
    1. Frankel, Jeffrey A. & Rose, Andrew K., 1996. "Currency Crashes in Emerging Markets: Empirical Indicators," Center for International and Development Economics Research (CIDER) Working Papers 233424, University of California-Berkeley, Department of Economics.
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    6. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
    7. Frankel, Jeffrey A. & Rose, Andrew K., 1996. "Currency crashes in emerging markets: An empirical treatment," Journal of International Economics, Elsevier, vol. 41(3-4), pages 351-366, November.
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    Citations

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    Cited by:

    1. Adam Abdullah, 2017. "Towards Stabilization of the World Monetary System: A Shariah Perspective نحو استقرار النظام النقدي العالمي: منظور شرعي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(2), pages 71-78, July.
    2. repec:abd:kauiea:v:30:y:2017:i:2:p:83-94 is not listed on IDEAS
    3. repec:abd:kauiea:v:30:y:2017:i:2:p:79-82 is not listed on IDEAS
    4. Salman Syed Ali, 2017. "Issues Involved in the Proposal of ‘A Global Currency to Stabilize the Monetary System’ قضايا تشارك في اقتراح "عملة عالمية لتثبيت النظام النقدي"," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(2), pages 59-63, July.
    5. Sheila Dow, 2017. "Global Currency Reform: A Proposal إصلاح العملة العالمية: مقترح," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(2), pages 79-82, July.
    6. repec:abd:kauiea:v:30:y:2017:i:2:p:59-63 is not listed on IDEAS
    7. Mark Jo?b, 2017. "Reform Proposals in the Monetary System for Attaining Global Economic Stability مقترحات الإصلاح في النظام النقدي من أجل تحقيق الاستقرار الاقتصادي العالمي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(2), pages 65-70, July.
    8. repec:abd:kauiea:v:30:y:2017:i:2:p:65-70 is not listed on IDEAS
    9. Clive Menzies, 2017. "Reform Proposals in the Monetary System for Attaining Global Economic Stability مقترحات الإصلاح في النظام النقدي من أجل تحقيق الاستقرار الاقتصادي العالمي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(2), pages 83-94, July.
    10. Adam Abdullah, 2020. "Modern Monetary Theory or Islamic Monetary Theory of Value? Evidence from Malaysia النظرية النقدية الحديثة أم نظرية النقد الإسلامي للقيمة؟ أدلة من ماليزيا," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 33(2), pages 25-46, July.
    11. repec:abd:kauiea:v:30:y:2017:i:2:p:71-78 is not listed on IDEAS
    12. Adam Abdullah & Rizal Mohd Nor, 2018. "A Framework for the Development of a National Crypto-Currency," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(9), pages 1-14, September.

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