Kelantan dinar, dirham declared ‘not legal’ tender

Kelantan dinar dirham

In quite a sensational claim that happened recently, it was declared that the Kelantan syariah gold dinar and silver dinar cannot be regarded as legal tender and hence will not have any commercial value in that sense.

This was confirmed by Kelantan mufti Datuk Mohamad Shukri Mohamad who said that the state government had no such authority such as to issue a currency and as the law stipulates through the division of power of the Federal Government and the states, only Bank Negara has the power to issue any form of legal tender.

Shukri was clarifying the issue recently after he was slammed for making the statement for better understanding among them and that the coins should only be bought as souvenirs or for investment purposes in view that it could worth more in a later time. The dinar and dirham was issued by Kelantan Golden Trade Sdn Bhd, a government linked to the state government.

He added that such coins should only be treated the same way one treats gold and diamonds and although they fulfilled the requirements to be Syariah currency, they are not commercially accepted under the law.

3 police reports were made recently over various misdeed allegedly committed by a senior official of the company. Meanwhile, Nik Mahani Mohamed, the former executive director of KGT said that the issue of recognizing dinar and dirham as legal tender should be placed under the Sultan of Kelantan’s purview and the state Baitulmal.

On this, Shukri said that as long as it is not recognized by Bank Negara or issued by the central bank, there is no need for such an effort because it would still not be regarded as legal tender at the end of the day. The issue meanwhile is in anyone exploiting the trading of the coins which could lead to problems like cheating and such.


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