Recently, the self-proclaimed Islamic State (ISIS)
announced that they will be minting their own currency, together with design
mock-ups of how the coins will look.
According to a statement issued by
the group's treasury department, Bayt Al-Mal, the currency will exist
separate from "the tyrannical financial system" which use
"satanic usury" and have been "imposed upon Muslims" which
serve to "enslave and impoverish" them.
"Based on the directive of the Emir of the Believers in the
Islamic State, Caliph Ibrahim, may Allah preserve him, to mint currency for the
Islamic State, as it is far removed from the tyrannical monetary system that
was imposed on the Muslims and was a reason for their enslavement and
impoverishment, and wasting the fortunes of the Ummah, making it easy prey in
the hands of the Jews and Crusaders, the Treasury Department studied the matter
and presented a comprehensive project, by the grace of Allah, to mint a currency
based on the inherent value of the metals gold and silver." (translation by Site Intelligence)
The value of the coins will be based on the market
value of gold and silver, which we know is extremely volatile and, as such, it
is unclear how products and services in ISIS controlled territories will be
priced – how many coins will a loaf of bread cost?
The ISIS proposed currency will have seven coins
called Dinars – two gold, three silver and two copper. The largest value coin
will be the five dinar which will contain 21.25g of gold (valued at £525.30 at
the time of writing). The lowest value coin will be a 10g copper coin worth
about five pence.
Logistically, it is unclear how ISIS will issue this
currency.
ISIS has an estimated daily oil revenue of $1 million, $20 million in
kidnapping ransoms and over $2 billion in assets, it is not clear where or how it will
acquire the supply of the precious metals it will need to mint these coins.
ISIS' plan to create its own currency aims to
bolster its claim that it is a functional nation and not just a terrorist
organisation. However, since territories in Iraq and Syria fall in and out of
the group's hand, the acceptability of the currency as a payment method won't
be widespread or stable.
Not to mention that most foreign investors won't be
able to "invest" in this currency without being charged with
"providing material support to a terrorist entity".
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