A Malaysian state’s attempt to revive use of gold and silver coins common in early Islamic societies has run afoul of the country’s Central Bank, which said Friday that local governments have no authority to issue their own currency.

The gold dinar and silver dirham coins provide an alternative to Malaysia’s currency, the ringgit, in the northeastern state Kelantan, which is governed by the Pan-Malaysian Islamic Party, a conservative opposition group that promotes religious policies in its rule.

The gold dinar was the official currency of Muslim societies for centuries. The value of the coins used in Kelantan can fluctuate according to market prices, but officials say it remains a better alternative to a currency affected by the US dollar and other foreign currencies.    »»» The Daily Star (Malaysia)

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