Cost-Benefit Analysis of Common Currency in Islamic Common Market

It is inevitable to have a common currency to do business and trading transactions within the Islamic Common Market. To fully comprehend the high significance of Islamic Common Currency، suffice it that one notices euro and US dollar used in transactions among member countries of Islamic Common Market are channeled to inject Islamic countries’ capitals into western and European economies while economic sectors in Islamic countries increasingly need capitals and liquidity to inject into their production and industry sectors. The development of Islamic Common Market and common currency area among Moslem governments yield hefty interests through channeling and utilizing Moslems’ capitals for various purposes such as developing Islamic countries’ economies، helping the emerge of an economic، political and Islamic power in the global era، expediting prosperous trade transactions among Islamic countries، expanding comprehensive relations among Islamic countries، adding governments’ taxation revenue resources، poverty reduction and public welfare improvement and last but not the least reducing interest rates. Moreover، costs and losses of establishing Islamic Common Currency might be reducing independence of the Islamic governments in adopting fiscal and monetary policies، difference of preferences about inflation and unemployment، interactive impact of the economy of a member country on the common market and the other way round and finally inflation taxes. Yet، apparently، its interests exceed the setbacks، not to mention the fact that the development of Islamic Common Market and Islamic Common Currency would be an outgoing path from the existing economic crisis.