al-maqrizi’s monetary reform-cheqda

8/7/2019 Al-Maqrizis Monetary Reform-cheqda

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MUSLIM MONEY

MASTERAL-MAQRIZI


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PRESENT BY:ISMAALENA ISMAIL 0634428

NURULHUSNA ARIP 0635044

NOR KHAIRUNNISA 0638784

HASMIDA MOHD RASPI 0639046


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HOW WAS HIS

LIFE ???


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HIS LIFE

Ahmad bin Abd al-Qader bin Muhammad bin

Ibrahim bin Tamim al-Bali al-Abidi al-Hsini.

Born in Cairo in 766AH/1364AD Died in (845AH/1441AD) on Thursday 26 of

Ramadhan.

Buried in Friday in Hush al-Sufiah al-Bibarsiah(Cairo).

He studied Quran,Prophet Muhammad tradition

and other branches of islamic studies.


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Teach hadith in Muayyadiah School in cairo

Serve the government of the mamluk under

Sultah Barkuk. Government officer in Diwan al-Insha

Qadi of the Shaari Mazhab

Imam of the Mesjid al-Hakim al-Fatimi. Muhtasib(Ombudsman)of Cairo.


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WHAT IS HE

ECONOMIC IDEAS ???


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The economic ideas of Al-Maqrizi

-not only confined money and inflation alone, but

encompasses the analysis of economic crises and its

linkages to the market forces and the economic role

of the state.

These ideas are found in his four monumental

works, namely:

1) Ighathat al-Ummah bi-kashf al-ghummah

2) Al-suluk li-Marifat dawal al-Muluk.

3) Shothur al-ugood fi thiker al-Nuqud

4) Al-Mawaiz wa-al-Itbar bi-dhikr wa-la-Athar


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The economic thought of al-Maqrizi emerges from

the fact that he lived in a crucial period of Islamichistory, that is the Mamluks period.

This period spanning over 250 years, can be divided

into two distinct period, the first ranging from 658AH/1250 AD to 792 AH/1390 AD and the second 784

AH/1382 AD to 922 AH/1517 AD

The second period of the Mamluk empire witnessedchanges in economic, social and political life.

During this time, hyperinflation occured


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the hyperinflation during the Mamluk dynasty is caused by

the monetary system, namely the use of fulus as money.

al-Maqrizi also believe that inflation is also caused by non-

monetary factors such as monopoly and hoarding and rising

cost of production.

Likewise,the Asian financial crisis in 1997, was partly causedby inflationary pressure coming from over-borrowing and over-

spending. Inflation increases cost of production, which in turn

lowers profit. Declining profit also implies lower company

valuation, which reflected itself in lower share prices of the

troubled company.


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(Ighatat al-Ummah bi kashf al-ghummah)

Pre-Islamic times

DuringP

rophet pbuh times

During Umar Al-Khattab times as caliph

During the Umayyad rule

During the end of Abbasid era began debasement

of money

use gold and

silver as

currency


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Egyptians under Fatimid rule used only gold as a

currency

Ayubi took power from Fatimi - he introduced silver

(dirham), keeping gold

in government treasury

Early period of Mamluk dinar and dirhamas currency

Later period began to use fulus (copper) as a currency.

WHY???


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WHY COPPER COINS

WERE USED TOREPLACE DINAR ???


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1. Scarcity of silver (dirham)

International trade Used to make decorative, luxurious

household, palatial and utensils

2. Dinar & Dirham were in short supply

Level of economic activity decline ( )

Alleviate further decline - Govt. began to import large

quantity of copper (cheaper and abundant in supply)

WHY COPPER COINS WERE USED TO

REPLACE DINAR ???


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WHAT ARE THECONSEQUENCES OF

USING FULUS ASCURRENCY ???


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Consequences of using fulus as currency

Prices

1st stage (801 805 H),

- Price but not sharply

2nd

stage (806 814 H)- economic struck by hyperinflation, and widespread ofpoverty.

- inflation become > worse, River Nile failed to reachplentitude (a full supply)

3rd stage

- reintroduction of dirham by Sultan Muayyad whofollowed money reform proposed by Al-Maqrizi


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WHAT ARE AL-MAQRIZIS MONETARY

REFORM ???


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blamed and critized the government

failed to uphold their responsibilities

mismanagement in monetary and failure tomaintain economic stability

this method kills people as they have to suffer

high price of commodities.


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First proposal

using only gold and silver

He recommended that all payment made in

trading (al-bay) and services (wages) must bemade using only gold and silver

For him, many other metal is unsuitable as a

currency


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Second proposal

Forbid the debasement of money

- Use silver dirham to pay wages as well as pricesof goods and services

To guarantee the welfare of the people from theabusing power of government, he stated

The price of 100 dirham of pure andunadultered silver is 6 mithqals of gold, to

which is added dinar at current prices to bepaid to the mint as a fee to cover the price ofcopper, the taxes to sultan, cost of firewood,the wages of workers and the like


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Third proposal

Restricted the use of fulus

He stressed on how much 1 mithqal should be

He stated one mithqal of gold will be exchanged for

24 silver dirham coins. 24 dirham cions is

equivalent to a weight of 140 dirhams incopper coins (fulus)


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Imam al-Maqrizi was so much confident that

by forbidding the debasement of money and

changed with the using of gold and silver and

the welfare of people is guaranteed.

He is very much concern about the welfare of

his people


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He stated in Khitat,

the price of goods under gold and siver

increases slightly but under fulus, price ofgoods increase rapidly

Therefore, gold and silver is easier and

comfort.


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THANK YOU

al-maqrizi’s monetary reform-cheqda

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