Proposals to Reform the International Monetary System from the Islamic Economy Perspective

Abstract

This research aims at studying different monetary systems proposed by economists in literature. Then, evaluating the Islamic economy proposals to reform the monetary system.

The study concluded that money has become an aim, not a tool of exchange or value measuring unit, and this has led to a disruption of local and international monetary system. In addition, the dollar’s control of the monetary system as a global currency caused many global crises. Hence, all proposals for reforming the monetary system in literature seek to create an international monetary system to overcome and/or eliminate this disruption

Keywords: Monetary system, monetary system reform, Bancor, special drawing rights, liter basket for commodities, Islamic economy.