Letters in Economic Research Updates
Placing the Principle of Non-Moharta Contracts on Money as a Commodity in the Islamic Banking System Towards Fair Financing
Abstract
Agus Pandoman
On August 15, 1971 the US Dollar died, On that day without Congressional approval, President Nixon ended the link between the US Dollar and gold. The dollar became Monopoly Money. 1 After that, the biggest economic boom in history had begun. In 2009, when the economy ran aground, the central bankers of the world created trillions of dollars, yen, pesos, euros and pounds by following the monopoly for the bankers.The concept of money has changed until today. The distribution of money has transformed into the concept of debt in various forms, including the use of money as an instrument of capital. The main contributor to capital in financing in trade traffic (muamalah) is financial institutions. Banks and non-banks as actors of money distribution used for business capital are concentrated in the form of financing, but after the end of money no longer uses the gold standard (fiat money), how far the meaning of financing can fulfill justice based on Islamic Banking [1].