The Flexible Model, Gold Dinar and Exchange Rate Determination.An Exploratory Study.Prof. Dr. Abdul Ghafar Ismailagibab@pkrisc.cc.ukm.my Universiti Kebangsaan MalaysiaNuradli Ridzwan Shah Bin Mohd DaliNuradli@kms.uniten.edu.my
Universiti Tenaga NasionalAbstract
Malaysia is promoting the usage of Gold Dinar as a payment settlement in international trade as a platformof unity between OIC countries. In respond, this paper would investigate the
of using theGold Dinar as a medium of exchange partially and entirely using the flexible model assumptions andinvestigate its impact to the flexible model as an exchange rate determination. The paper will also evaluatethe whether the Gold Dinar could play its role as a medium of exchange or money.
Malaysia is promoting the usage of Gold Dinar as a payment settlement in internationaltrade as a platform of unity between OIC countries. In respond, this paper wouldinvestigate the
of using the Gold Dinar as a medium of exchange partiallyand entirely using the flexible model assumptions and investigate its impact to theflexible model as an exchange rate determination. The paper will also evaluate thewhether the Gold Dinar could play its role as a medium of exchange or money.There are three basic roles of money, which are widely accepted. The roles of money areas a medium of exchange, as a store of value and as a unit of accounts. Money acts as amedium of exchange because it is accepted for exchange of goods and can be used to buy
The authors also wish to express their appreciation for many scholars and practitioners who madeextensive comments on earlier and current drafts especially to Associate Prof. Dr. Mohd Zaidi Isa(Universiti Kebangsaan Malaysia, Malaysia), Abdul Kadir Abdul Riyas (University of Technology,Australia), Randi Wade Purchia (Commonwealth International, USA), Dr Samer Katakji (SKBSC, Syria),Samudjo Subandi (Pt Apexindo Pratama Duta Tbk, Indonesia), Muhdiar Bahril (PT Yusen, Indonesia),Tarsidin (The Univ. of Indonesia, Indonesia), Auwalin (Airlangga University, Indonesia),
MohammedGhazali,( Investment Dar Co. KSC, Kuwait), Tubagus Farash Akbar Farich (University of Indonesia,Indonesia), Dr Mohammad Alinor (Universiti Kebangsaan Malaysia, Malaysia) , Abdullah Haron (IslamicFinancial Service Board), Isra Ahmad (IAIN Ar-Raniry Banda Aceh, Indonesia) Carow, Kenneth A.(Indiana University, USA), Ahmad Touray, Annette Riggs (Financial Diversity for Local Economies,USA), Ali Mutasowifin (Universitas Paramadina, Indonesia), Rachmad Hernowo (Central Bank of Indonesia, Indonesia), Srikumar Ravindran (Virinchi Integrated Solutions Sdn Bhd, Malaysia), AssociateProff. Mohd Abdad Mohd Zain, (IsNet-Universiti Sains Malaysia, Malaysia), Hifzur Rab (Oil & NaturalGas Corporation Ltd, India), Bhakti Mirchandani (Harvard Microfinance and Development Venture Capital(MADVC) Network, Harvard University USA) Georgina Mercedes Gomez (ISS, Netherland), Ungku Sara(Malaysia), Rafeah Fazlina (Malaysia), Muhammad Mazli Alias (Permodalan Nasional Bhd, Malaysia),Mohammad Rezal Hamzah (Institute for Community and Peace Studies University Putra Malaysia,Malaysia), Mohamad Zaini Ismail (ABB Lummus Global P/L), (Aznan_Zuhid Saidin (Malaysia), EkoFajar (Sony LSI Japan, Indonesia), Bahril (Indonesia) Syed Muhammed Kifni (Alliance Merchant Bank,Malaysia)