http://www.todayonline.com
05:55 AM Aug 13, 2010
KUALA LUMPUR - Malaysia's Kelantan state yesterday launched the Islamic dinar and dirham as an alternative currency, allowing the golden and silver coins to be used as legal tender alongside conventional banknotes.
The authorities in the northern state, which is ruled by the Islamic opposition Parti Islam SeMalaysia (PAS), said the Islamic currencies would be used in many shops in the state in addition to the ringgit.
"We have over 1,000 shops that have signed up to our campaign and agreed to accept the dinar and dirham for the purchase of goods," state Cabinet Minister Husam Musa said.
He said signboards have been erected in the main market in the state capital Kota Bharu to show the conversion table between the dinar and ringgit, and participating shops will display stickers to encourage people to use the coins.
"The response has been very positive and all the coins which were worth a total of RM2 million ($834,300) have been sold out at the launch today," said Mr Husam.
According to Islamic law, the dinar is made of 4.25 grams of gold, while the dirham is 3.0 grams of pure silver.
A golden coin is equivalent to about RM582, while the silver coin is worth around RM13 but their values fluctuate according to market prices.
Mr Husam said the dinar and dirham currencies can also be used dealings with state government agencies, such as paying "zakat", or alms for the poor. AFP
http://www.todayonline.com/World/EDC100813-0000076/Malaysian-state-launches-its-own-dinar-and-dirhams
