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DONGGO, Zea Maye J. BAPS 2-3 Ms. Nova Sabio

MUAMMAR GADDAFI’S GOLD DINAR: THE RISE OF ISLAMIC COUNTRIES IN INTERNATIONAL MONETARY SYSTEM

The gold standard was quite stable and was highly regarded throughout the world. It paved the way for international trade as people around the globe have a mutual desire for gold. The purpose of this paper is to understand why the late Muammar Gaddafi; the longtime leader of Libya planned to change their currency into gold. Gold- dinar (An African money made of Gold) money plan would be the rise of the Islamic countries in the international monetary system and how does the proposal for the gold dinar trading will affect the other non-Islamic countries in the world. Would it be beneficial of self-interest movement?

BACKGROUD OF THE STUDY Money plays a lot in our economy nationally and internationally; money is not only about the value of the currency, but it serves as the medium in exchange of goods and services like the basic for survival. A hundred years ago people used many things just to accommodate trade like a piece of seashell or stones later when mining was discovered the birth of gold plays the game in trading. It serves as a “real-high-end valued” exchangeable goods. Today our system of valued goods was in a composition of paper and coins wherein it has a different value in the international monetary system as of now the base currency in the world was the US Dollars. Unfortunately, the paper money system does have its flaws including some that make it an

unacceptable medium in the eyes of Islam. These flaws are discussed in this article along with an alternative system that can be used by the world communities. Libya is bordered by the Mediterranean Sea to the North, Egypt to the East, Sudan to the South-East, Chad and Niger to the South, and Algeria and Tunisia to the West. With an area of almost 1,800,000 square kilometers, Libya was considered as large country in Africa. However, the Sahara Desert covers more than 95 percent of the country, and therefore most of it is uninhabitable; more than 90 percent of Libya’s six million people live along the Mediterranean coast This new system is one that is sure to be just and in accordance with the Islamic injunctions. Traditionally Libya has been divided into three distinct regions, namely Cyrenaica, Tripolitan, and Fezzan. Separated by the vast area of desert, Cyrenaica (East) has tended to look eastwards to the Mashriq or eastern Islamic world (Egypt) historically, and is known for its tightly preserved tribal structures, its orientation towards Egypt, and its socially and religiously conservative population. Whereas, Tripolitania (West) has looked westward to the Maghrib or western Islamic world (like Tunisia) historically, and has a more modern and cosmopolitan approach to life, oriented towards the Mediterranean. And lastly Fezzan (South/Southwest) has looked south to central and western Africa (Niger and Chad) historically, and is Libya’s sparsely populated hinterland, inhabited by the Tuareg, Tebu and their caravans. These three regions are separated by vast distances, and overland travel between them is even to this day very difficult. The three regions have historically been relatively separate and autonomous. Thus, until the 20th century, the three provinces of Libya shared little common history or physical contact, therefore; for centuries, Libya’s history was a story of regions. An attempt is however, made in this section to analyze different aspects of socio-economic and regulatory issues for the possible implementation of the gold currency in the contemporary reality. The word dinar came from the root word; denarius or the ancient coin of the roman empire introduced during the second Punic war. In Islam it was believed that the only currency should be use was gold and silver, that is why the former Libyan leader Muammar Gaddafi rolled down their new currency introduce the Gold Dinar to break the fed enslavement of the capitalist financial system. Gaddafi’s Gold Dinar has two grounds in producing their own currency in gold-money plan; first is the religious motive as mentioned above in Islamic countries the currency should be gold or silver second is that Libya wants to get away from this “paper-money system” because they believe that it was an unjust monetary system we all know that gold is gold in forms of coin or bars it has its own value example for the

value: 1 coin dinar is about to 139 US Dollars weighing approximately 4.25gm, this monetary system can save the Islamic countries economy, this will lead to amalgamate of Africa.

STATEMENT OF THE PROBLEM This study is reflecting the hype situation of the African state in terms of funds and resources in monetary application, looking for the possible output of the proposed gold dinar plan and if this was only passed and implemented.

1. Does it affect the other non-Islamic countries? 2. Does the use of gold dinar in Muslim countries would be helpful for the international monetary system? 3. The advantages and disadvantages of gold dinar

OBJECTIVES Gold dinar was a reality way back a hundred years ago and it was also proposed by other country like the Malaysia, this study was concerned on why and how to sustain and asses this kind of currency especially in international monetary system.

1. To know if the Gold Dinar plan can save the Africa from drowning down in international monetary system. 2. To know if Muammar Gaddafi’s gold-money plan would have devastated Dollars.

3.

To determine if Gold dinar is a threat for non-Islamic countries, knowing that Libya is the largest oil producers in Africa.

SCOPE AND LIMITATION This research focus on the effect of the Gold Dinar plan if it was prosperously implemented, due to the death of the Libyan leader Muammar Gaddafi the plan didn’t happen. But what if this plan was engaged in the international monetary system it will determine if this plan is helpful or portraying a self-interest movement. This will be limiting the question of above-mentioned statements and information regarding the said topic that contributed to the study of the Gold dinar.

CONCEPTUAL AND THEORETHICAL FRAMEWORK The economy of Libya during Gaddafi’s regime is prosperous and is privatized due to the political condition of the Libya for 20 years under Gaddafi’s. The length of his regime is questionable under the UN but that doesn’t bother him as long as he has plans for his countrymen, he will serve his all with dedication and love for the country. During the fire of his Gold Dinar plan the US interfere due to the problems and grounds of the plan, it will create a major adjustment to the non-Islamic countries and those who doesn’t have much gold savings. The plans say that all transaction underling in Libya should and will only available to those who have gold, gold to gold transaction. This plan will devastate dollars for the fact that Libya is one of the most big-time oil producers in the world and geographically speaking Libya is the largest in Africa, in terms of monetary US Dollars plays the major role but if this plan really happen it will be the downfall of USD. War, it was a conspiracy that the Tripoli war was manufactured to emerge a civil war pointing a finger to the long-term leader of Libya, in 2011 during the Tripoli war he was willing to talk between the National Transition Council but this led to his assassination in Sirte. Gaddafi died with all his plans for the betterment of Libya. After his death Libya suffers so much unlike before wherein; 1. There was no electricity bill in Libya; electricity was free for all its citizens. 2. There was no interest on loans, banks in Libya were state-owned and loans given to all its citizens at zero percent interest by law.

3. Having a home was considered a human right in Libya. 4. All newlyweds in Libya used to receive 60,000 dinars (£34,470) by the government to buy their first apartment, to help start up the family. 5. Education and medical treatments were free in Libya. Before Gaddafi only 25 percent of Libyans were literate. Today, the figure is 83%. 6. If Libyans wanted to take up a farming career, they would have received farming land, a farming house, equipment, seeds and livestock to kickstart their farms all for free. 7. If Libyans could not find the education or medical facilities they needed, the government funded them to go abroad. For it was not only paid for, but they got a £1585/month for accommodation and car allowance. 8. If a Libyan bought a car, the government used to subsidies 50 percent of the price. 9. The price of petrol in Libya was £0.09 per liter. 10. Libya had no external debt and its reserves amounted to £103 billion -which are now frozen globally. 11. If a Libyan was unable to get employment after graduation, the state would pay the average salary of the profession, as if he or she was employed, until employment was found. 12. A portion of every Libyan oil sale was credited directly to the bank accounts of all Libyan citizens. 13. A mother who gave birth to a child received £3447. 14. 40 loaves of bread in Libya used to cost £0.10. 15. 25 percent of Libyans now have a university degree. 16. Gaddafi carried out the world's largest irrigation project, known as the Great Manmade River project, to make water readily available throughout the desert country.

That made a remarkable history throughout politics and humanity, after his death the Libya collapses its economy that still causes civil wars and more non humanitarian crisis. 70.00% 60.00% 50.00% 40.00%

GDP MONEY EXCHANGE GOLD PRICE

30.00% 20.00% 10.00% 0.00% GADDAFI

MAGARIAF ABUSAHMAIN

The Units of The Libyan Dinar: One Libyan dinar (LYD 1) = 100 qirsh = 1000 dirhams (or mellim). Qirsh = 10 dirham. The smallest coin in circulation is 5 qirsh (50 mellim or milliemes) or 5 pence. The copper 1 pence and 2 pence coins are no longer in circulation, but are available from Libyan banks.

REFERENCES Ahamed Kameel Mydin Meera and Moussa Larbani, 2004. The Gold Dinar: The Next Component in Islamic Economics, Banking and Finance. Retrieved from http://iaif.ir/images/khareji/articles/other/62.pdf

Alex newman, 2011 November 3. Gadhafi’s Gold-money Plan Would Have Devastated Dollar. Retrieved from https://www.thenewamerican.com/economy/markets/item/4630-gadhafi-s-goldmoney-plan-would-have-devastated-dollar

GoldRate24, (2020). Retrieved from https://www.goldrate24.com/gold-prices/middle-east/libya/

Mansor H. Ibrahim, 2017 November 17. Monetary Dynamics and Gold Dinar: An Empirical Perspective. Retrived from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3072468

Millenium-state blog, 2019 May 3. Gold Dinar: the Real Reason Behind Gaddafi’s Murder retrieved from https://millenium-state.com/blog/2019/05/03/the-dinar-gold-the-real-reason-forgaddafis-murder/...