Islamic State to launch own currency

ARA News

Erbil, Iraqi Kurdistan– Abu Alouf al-Iraqi, an official in the Islamic State group (IS/ISIS) in Mosul, announced that a common currency of gold and silver will emerge soon in the “land of the Caliphate” –Syrian and Iraqi areas controlled by the extremist group.

“The Islamic State has decided to suspend dealing with the local currencies in the areas under its control,” al-Iraqi said in a statement on Tuesday. 

The Islamic State decided to coin a new currency reflects its identity as “a state with sovereignty and economy”. The new currency, namely Islamic Dirham, is expected to substitute the local and foreign currency in both of Syria and Iraq. 

Al-Iraqi stressed that the IS-leaders approved naming the new currency as Islamic Dirham, saying that the difference of currencies across areas of the so-called Caliphate “constitutes an obstacle to the unity” of the IS-held territory.  

The IS official also revealed that the group seeks to create a central bank in Mosul (the third Iraqi city, which is currently under IS control) to manufacture its new currency.

“Mosul is considered our economic capital, thus the new currency will be launched there to spread across the territory of the State of Caliphate,” al-Iraqi said.

Khorshid Alika, economic researcher and member of the Kurdish Association of Economists in Syria, stated to ARA New that the IS radical group has all the necessary resources to create its own central bank in order to issue an Islamic currency.

“This alleged currency is deemed an attempt by the group to strengthen the foundations of the interim Islamic caliphate, and as part of its war against the western countries,” Alika argued. 

“As soon as they launch their currency, the IS militants will prevent locals from dealing with the Syrian Lira or Iraqi dinar anymore,” Alika told ARA News. “They intend to use pure gold and silver dinars in their coins, which is meant to be an indication to how rich and organized they are.” 

Alika stressed that the IS’ daily revenue reaches two million dollars “due to oil sales on the black market”, adding that the extremist group also gains several millions of dollars a month from some wealthy donors, as well as looting banks and collecting taxes as alms. 

“This year, the group has so far gained at least 20 million USD as ransoms from abductions,” he quoted IS-linked sources as saying.

According to IS-linked sources, the Islamic Dirham is inspired by the coins manufactured during the rule of the caliphate Uthman Ibn Affan in the year 634 AD, which were engraved by the words “There is no God but Allah” and “Mohammed is the messenger of Allah”.  


Reporting by: Sarbaz Yusuf

Source: ARA News

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