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The Kelantanese dinar is a modern gold coin issued by the state of Kelantan in Kota Bharu, Malaysia. The issue of the Kelantanese gold dinar was first conceived after a proposition by the prime minister of Malaysia Mahathir ibn-Mohamad last 2002 on the need to revive official Islamic currency to restore the forgotten third pillar of Islam (zakat, meaning 'charity') which was (traditionally) only payable in gold (dinar) and silver (dirham) in accordance with Shariah law.  While the motives for this return to tradition may seem to be purely religious, there are economical motives that may have inspired Mohamad to propose for the gold standard's revival in the whole of the Islamic world. His proposal was not officially meted out however, and only minor areas with strong traditional (read orthodox) Islamic sensibilities complied with a revival of the gold and silver currencies of the ancient Islamic world. One of these areas was Kelantan, which, in 2006, first struck examples of gold dinars in Kuala Kangsar, Perak. These coins were created by one Mariwasa Kraftangan, a local artist and producer of objets d'art and historical replicas.  Made with 22 carat gold in an attempt to conform with Mohamad's proposed Islamic gold dinar (which is supposed to be minted in 24 carat gold), the Kelantanese gold dinar carries three denominations – ¼, ½, and 1 dinar, respectively each with a different weight in gold, while retaining the same gold purity. The coin's designs were developed and presided over by Ismail Bukhari, a designer of coins in the Bank Negara. 
Each denomination, equating to a specific weight in gold is as follows: one dinar (4.25 grams, worth 332.25 Malaysian Rupees, measuring 23mm), half-dinar (1.06 grams, worth 176.76 Malaysian Rupees, measuring 20mm), and a quarter-dinar (0.5 grams, worth 99.38 Malaysian Rupees, measuring 21mm). Other denominations have subsequently been struck following these three 'prototypes'. Unlike the traditional dinar of ancient Islamic fame, these modern dinars featured the coat-of-arms of Kelantan in the reverse, although it also featured Arabic monograms displaying Q'uranic verses in the obverse side of the coin. These coins were shortly after their production on the 20th of September, 2006. In the 10th of August 2010, these coins were used in a public ceremony where the Kelantanese government collected and distributed zakat, led by Chief Minister Dato Nik Aziz Nik Mat. 
Although it was declared by the state of Kelanatan as possessing legal status, and subsequently, legal tender, the federal Malaysian government in Kuala Lumpur denied these claims, stating that the only currency with any legal status in Malaysia is the Malaysian ringgit. The federal government solidified their stance by stating that no state in Malaysia had any legal right to issue coins, further claiming that they were contra the desire of the Kelantanese states due to its being a breech of the law even before the coins were minted.  The Kelantanese gold dinar still proved to be very popular despite its being an unofficial currency, not only owing to the fact that it maintains strong ties and accordance with traditional Islamic laws (Shariah) and some Sunnah (traditional practices), but also due to the fact that it made excellent hedge money against possible failures in the Malaysian economy. Kelantanese State Financial Planning committee chairman Datuk Husam Musa encouraged the use of the Kelantanese gold dinar, further advocating its spread internationally throughout all the Islamic nations as a preferred means to pay for all both general and traditional transactions, and, eventually, its adoption as the standard currency throughout the whole of the Islamic world. The gold and silver coinage issued by Kelantan is highly prized by bullion investors and collectors not only for their relative value, but also for their beauty and fine quality. Many examples of modern gold dinar are sold in online stores that specially feature the sale of these coins as permitted by the state of Kelantan.
Kelantanese Dinar - References:
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