Money In Islamic Economics System

In our life, we cannot be released from the thing named money. Money means any medium of exchange that is acceptable / applicable in general. There are many functions of money:

1. Medium of exchange
2. Unit of account
3. Store of value

Based on the three of those functions, there is one of them that not fit with Islamic system, that is the 3^rd function, money as “Store of Value”. Islamic Economics just allows money as medium of exchange and unit of account, but forbids use money as store of value. Money as store of value means that makes money as a commodity, so that the existence of money is now more widely traded than be used as a medium of exchange in trade. The concept of money is not allowed to be applied to the commodity, because it can damage the financial stability of a country. Basically the function of money is public property, because it had the money circulating in the economy. So, money should not be stockpiled. Money should be invested in real business, such as through investment Mudharabah or Musyarakah. (by: Mudawamah - 11220079)

Reference: Basri, Ikhwan Abidin. 2008. Menguak Pemikiran Ekonomi Ulama Islam. Solo: Aqwam Jembatan Ilmu