9. Comparison of gold dinar and euro Charecteristics Gold dinar Euro Reduce dependancy on US Dollar Many currencies including the Malaysian Ringgit are floated based on the US Dollar. As a result if the dollar pricing goes up the value of the ringgit goes up and comes down if the value of the dollar comes down. Once the gold dinar is introduced , currencies will be pegged to the gold which has its own intrinsic value and is more stable. Before the introduction of Euro currency,the currency of the member countries of Euro were more often pegged to the i s dollar.Eversince Euro introduced the demand of the currency is going up and more countries are now pegged to the euro currency.

10. Increased price stabilty We find that in many Islamic countries, price of goods is determined by many other factors such as exchange value,price differentiation, demand ,supply and so on. But if the goods are priced in terms of gold the value of goods with respect to gold will almost always be the same. With the introduction of euro currency, tremendous price stability has already been achieved because all the 12 member countries of Euro have become a single economy of goods.

11. Strengthen their currency Currently most of the Islamic The member states of th euro countries do not issue their currency, were members of the currency based on the nation's european union previously,but some wealth,i.e their natural resources, countries because of their currency rather it is again based on U.S. weakness,example Spain, Italy currency which is a fiat money were unable to get favourable trade subjected to several trade cycles. agreements.Now since such weak This can be improved when they economies are integrated into the use Gold Dinar ,since gold dinar Euro mainstream their currency doesnt involve credit creation has automatically strengthened which means there will be no trade thereby strengthening the cycles also ,and in the absence economy also. of trade cycles,the currency gains stability.

12. To promote A common currency would help to Euro currency has been cooperation promote cooperation between participating countries in various spheres, as it vastly reduces speculation,arbitrage and in turn would boost trade ties and economic Development successful in promoting cooperation among member countries as in WTO talks,they are able to pose a common front and win many potential agreements.

13. Better representation Since all Islamic countries This has already been proven in trade dealing pose a common front, they are less likely to be rallied over by the superpowers using hedging and arbitrage and various trading tactics. Trading deals can be in terms of dollar equivalent to gold, and not fiat money equivalent to fiat money as is prevalent now in the case of euro where because of the strength of their currency many trading countries especially Asian countries prefer to keep their foreign exchange reserves in Euros rather than in US Dollar which used to be the norm in earlier days