Islamic State To Start Minting Gold And Silver Coins

0
1249

So the Islamic State wants to start minting coins to escape the tyrannical yoke of foreign countries that control economies with the flow of paper money.

The Islamic State caliph Abu Bakr al-Baghdadi regards a national currency to underpin the foundations of a wider Islamic empire that harks back to the Middle Ages.

Then, the caliphs of the Middle East controlled a vast economy stretching from Spain, across North Africa and away to distant Pakistan.

The empire needed a common currency as the Islamic armies had conquered two regions with quite separate currencies.

The west was the former Byzantine Empire which minted gold coins, while the east favoured silver coins.

Booking.com

Past grandeur

The announcement by the Islamic state that the leaders intend to mint gold, silver and copper coins of the same size and weight of the ancient coinage is meant to show the Islamic State intends to build an empire that reflects the past grandeur of the caliphs.

However, although observers may argue that although the Islamic State is firmly rooted in the seventh century, the rest of the world has moved on.

The Islamic State currency will stand isolated. No one outside their sphere of influence will be able to exchange their money for US dollars, Chinese renminbi, Pound sterling or the euro.

In a digital world where Bitcoin and other virtual currencies are taking off, gold and silver coinage will just weigh down the pockets and have nothing but bullion value outside of the Islamic State.

Prize targets

Although the Islamic State will avoid a full on military confrontation with the coalition of Western and Arab governments, they will continue to fight an underground war in the fashion of the Taliban.

Minting a currency does not change the fact that military and economic might will eventually hold sway in the region – and the Islamic State has neither, only what it can beg, borrow or steal.

The other problem for the Islamic State is keeping open lines of supply and communication if Abu Bakr al-Baghdadi wants to extend his domain.

His options to move troops, equipment and supplies are limited while Western air power dominates the skies.

The war between the coalition and the Islamic State will remain at stalemate for some time to come as the coalition frustrates Abu Bakr al-Baghdadi’s expansion plans and picks off prize targets and important individuals as they pop their heads over the parapets.

Leave a Reply