Dirham Currency in Point Sales System

INTERNATIONAL ACCOUNTING AND BUSINESS 2011
CONFERENCE
DIRHAM CURRENCY IN POINT OF SALES SYSTEM
Dziauddin Sharif
Mohd Hafifi Bin Mohd Supir
Center for Islamic Thought and Understanding,

UiTM Melaka
Faculty of Computer Science and Mathematics,

UiTM, Melaka
dziau646@melaka.uitm.edu.my
hafifi.supir@mmu.edu.my
Mohd Zaki Bin Masud
Ahmad Zaki Mat Ali
Fakulty of Information Technology and

Communication, Universiti Teknikal Malaysia
Melaka (UTeM)
Fakulty of Information Technology and

Communication, Universiti Teknikal Malaysia
Melaka (UTeM)
zaki.masud@utem.edu.my
zaki.bitc@gmail.com
Abstract
Purpose The purpose of this research is to develop a Dirham Point of Sales System that
incorporates dirham currency in the coexisting Ringgit currency system using RFID technology.
Design/methodology/approach A study is done on the several existing point of sales systems
to gather data. The data is then analysed in the form of data requirement, system requirement,
functional requirement and non-functional requirement. Based on these requirements, the system
is designed and developed.
Findings Early findings shows that the system can give benefits the users by providing more
sustainable and less fluctuating value in the currency because of the use of dirham (silver). This
system also can help to solve the inflation and depreciation of the Ringgit value over time.
Originality/value This research intends to fill a gap whereby there is still no point of sales
system that incorporate dirham currency value that coexisting with the Ringgit currency in the
market in Malaysia.
PROCEEDINGS IABC2011
Page 1

CONFERENCE
Keywords
Dirham, point of sales, RFID, exchange, conversion
Paper type Research paper
INTRODUCTION
Gold and silver have been used since the beginning of Islam and have been the most stable
currency that the world has ever seen. The bimetallic currency cannot be inflated and devalued,
thus making it independent from the financial system the world is currently used. The use of
dirham will surely cause zero inflation rates and create a balance economical environment. Based
on this reason, this project proposes the use of dirham currency card in a point of sale system.
The domain of this system is a Point of Sale (POS) and dirham conversion. POS is the physical
location at which goods are sold to customers or cashier counter whereby both hardware and
software will be used in an electronic cash register. By introducing an alternative currency
named dirham virtually in form of a RFID card, customers can benefits the stability of the silver
value. The RFID will be used as the human-machine interaction because of the efficiency and
well-known technology that can be used widely nowadays. RFID is a data collection technology
that uses electronic tags for storing data. All users will have a RFID card that works just like
debit card but the value inside the card are in dirham and Ringgit.
All information is stored in the database and will be displayed as the card is swapped at the card
reader. The card is used as mean of transaction in supermarkets. The card will be bought by the
customers with initial dirham value and the value can be added by the customer from time to
time. All products are using RFID tags as well to enable identification and information storage
such as price, product name, expired date, etc. The objectives of this project are to develop a
Page 2

CONFERENCE
complete currency transaction using a dirham card and to demonstrate the use of dirham
currency in the real environment.
Problem Statement
The instability in price has become a very serious problem as the price of necessity goods in
market seems to extremely fluctuate from time to time. Wild fluctuations in price could create
catastrophic consequences for the economy. This event may lead into financial distress for
people, thereby bringing about numerous socio-economic problems such as unemployment,
poverty, increasing disparity in income distribution and so forth. Previous researches had shown
that the coinage system such as the gold dinar and silver dirham can make the whole economic
system sustainable rather than fiat money system. Therefore, this research will aim to develop an
alternative currency system using dirham and to enable the use of dirham currency in the real
transaction.
LITERATURE REVIEW
Why Dinar and Dirham?
Meera (2004) frequently emphasized on how these precious metals could play an important and
significant role in stabilizing economic disasters such as inflation and recession. These
commodity monies could be able to sustain from the economic disaster because it has its own
intrinsic value and could stop money to become cheaper as what fiat money system has been
producing in banking sector (Abdul Hamid, 2002). Dinar and dirham which is gold and silver
originated could realistically replace existing currency and leads to be able to become a single
global currency (Bonpasse, 2007). Besides, these commodities monies has their own
characteristics which enabling them to eradicate or minimize the negative effects and impacts of
modern monetary system (Freeman, 2003).
Page 3

CONFERENCE
Today many investors become interested in gold and silver model. The concept of gold also was
mooted out by the former Malaysian Prime Minister Tun Dr. Mahathir Mohammad, when he had
called on such countries to formulate a gold payment (Mahathir, 2000). The price of export and
import the commodities product like food, construction product and others are to be quoted in
weight of gold and silver, thus it can hedge the price fluctuation due to the price of gold and
silver is more stable, so in this structure the gold itself is used for pricing and not national
currencies backed by gold. On top of that, it is already proven the prices of commodities can be
hedged and stabilized in 10 years time tough it is been used merely depend on intrinsic value, not
only being backed.(Dziauddin, 2008).
The idea of comparison of gold and silver performance with available currency
In addition to highlighting repeated failures of previous fiat currency systems, Muhayiddin, M-N
and Elsadig M.A.(2009) takes a different approach of revealing the fine performance of gold i.e.
as far as its purchasing power is concerned. They calculate the price of a few inflationary items
in terms of Ringgit Malaysia (RM), as well as their corresponding prices in terms of gold (or
silver). Having convinced with a fine performance of gold in terms of its purchasing power, it is
therefore the aim of their research to solve the problem of portability inherited in gold. If gold
were to be adopted successfully as a payment system, the issue of portability should be correctly
addressed or else the masses would not be encouraged to use it. Specifically, they propose the
use of physical constraints associated with the two precious metals can also be solved through
the proposed e-commerce system.
The needs of replacing paper currency with dinar and dirham

Barisheff (2006) has reported that the US dollar has lost 82% of its purchasing power as
measured by the Consumer Price Index (CPI) since 1971. The scenario can be illustrated as
follows -- if 100 widgets can be bought with $1 in 1971, only 18 of such widgets can be bought
for $1 in 2006. Alternatively, the erosion of dollars purchasing power can also be looked at this
way; in 1971 the price of gold was $35 per ounce2, now in (April) 2008, we need to pay $9203
Page 4

CONFERENCE
to buy exactly the same 1 ounce of gold. So a simple mathematics will reveal that from 1971 to
2008 (37 years), in terms of US dollars, the inflation has gone up by 2528.6% i.e. ((920 - 35) 35)
100%. Or equivalently, for the duration of 37 years, the US dollar has lost 2528.6% of its
purchasing power. What an astronomical number! To further illustrate the figure, the minus
2528.6% indicates that in 1971, $35 could buy 1 ounce of gold whereas today that same $35 can
merely buy (35 920) = 0.0380 ounce of gold, a tiny fraction of gold indeed (Muhayiddin, M-N
and Elsadig M.A., 2009).
Dinar Dirham and electronic appliances

The idea here is to find ways, such that every transaction of dinar and dirham could be carried
out effectively and highly secured, and yet those two precious metals do not move as often as
they are being transacted. Muhayiddin, M-N and Elsadig M.A.(2009) strongly believe that those
objectives can be achieved via the use of e-commerce system, or to be specific an electronic
payment system of the e-commerce systems such as Smart Card System, Stored-Valued Card
System and Software-Based Electronic Payment System.
PROJECT METHODS
Project Design
In order to ensure a proper system design that imitate the existing transaction methods in the
market, a suitable methods is used to gather accurate data for this project. The data is then
analysed and the requirement of the project is identified and thus the system design will
considered all the requirement analysis into account.
Requirement Analysis
This section will explain the requirement analysis in terms of functional requirement, software
requirement, and hardware requirement. The activities in analysis phase are mainly to gather and
Page 5

CONFERENCE
understand the requirements of the system. The requirement can be categorised into data
requirement, functional requirement and non-functional requirement.
Data Requirement
Data requirement is the data that should the system stored. In this proposed system, the system
will be used by only authorized user. This system requires an administrator who has a username
and password in order to login into system. The data of the system will be stored in database
which is Microsoft Access. There are ten tables in this system such as User Login, Login Log,
Staff Details, Product, Purchase, Customer Info, Topup and formula.
Table 1 describes about data input for administrator consists of username and password. This
table is used by staff to login into system. The input type of username and password is text and
the validation rule is not allow null which means user needs to enter their correct username and
password.
Table 1: Data Model for Login Table
Field Name
Description
Sample Data
Username
Username for the registered staff
Ahmad
Password
Password of the registered staff
abc123
ID Staff
ID staff number
S001
Level Sys
Level for each different department
Table 2 shows data input for Login Log. This table is used to record and monitor user login into
system. It will state the time and date for every time the user login.
Page 6

CONFERENCE
Table 2: Data Model for Login Log
Field Name
Description
Sample Data
Login No
The number of record
32
Username
Username that is used to login
Fakrul
Password
Password that is used to login
1234
Login Time
Time login
12:33:25 PM
Login Date
Date login
15-Jun-10
Table 3 shows the staff details. The administrator have allowed to access to this data. From this
form, the administrator can search, add, update and delete new staff and assign it to which
department the user belongs.
Table 3: Data Model for Staff Details
Field Name
Description
Sample Data
Staff ID
Registered staff ID
S003
Name
Staff name
Izo
Department
Department it belongs
Service
Contact No
Staff contact number
0133232323
Table 4 shows data input for product table. It is a data which keep all the product info like
product ID, item and price.
Table 4: Data Model for Product
Page 7

CONFERENCE
Field Name
Description
Sample Data
Product ID
ID for product
1F7FC2C5E88007E0
Item
Type of item
Table
Price
Price item per unit
123.00
Discount
Promotion discount
10%
Table 5 shows data input for purchase table. Purchase table will keep all the info needed as a
reference to admin and customer.
Table 5: Data Model for Purchase

Field Name
Description
Sample Data
Purchase ID
Reference for purchase bill
E001
Purchase Date
Date purchase made
25-May-10
Card ID
Customer ID
1F7FC2C5E88007E0
Total
Amount of payment
500
Table 6 shows data input for customer info. It have a customer information including name,
address, contact number and credit balance by referring on their card id.
Table 6: Data Model for Customer Info
Page 8

CONFERENCE
Field Name
Description
Sample Data
Card ID
Customer ID
1F7FC2C5E88007E0
Name
Customer name
Ahmad
Sex
Customer sex
Male
IC Number
Customer IC Number
890909-21-1211
Phone Number
Customer phone number
013-3565565
Address
Customer Address
TKC
Credit Balance
Credit balance in their account
2083.99
Status
Account status
VALID
Table 7 shows data input for topup table consist of CardID, TopupDate, Name, CreditBalance,
Topup and Rate.
Table 7: Data Model for Topup
Field Name
Description
Card ID
Customer ID
Topup Date
Date of topup
Name
Customer name
Credit Balance
Customer IC Number
Topup
Topup Amount
Rate
Exchange rate per one Dirham
Sample Data
Page 9

CONFERENCE
Table 8 shows data input for formula as a record currency exchange.
Table 8: Data Model for Parameter

Field Name
Description
Sample Data
Num
Number of data
53
Date
Date exchange
20-May-10
Dirham
Dirham currency value
Ringgit
Ringgit currency value
15
Functional Requirement
Functional requirement can define as a function of a software system or its component. A
function is described as a set of inputs, the behavior and outputs.
Login Function of D-POS System
Figure 1 describes the flow of the login function. There are three types of user level which are 0
for Administrator, 1 for Finance and 2 for Service. The three levels are behalf of department. The
user must login the correct username and password into the system. Then, by referring on
database, the user login will be forwarded onto the user menu.
START
Login Menu
2
User Level
Page 10

CONFERENCE
Figure 1: Login function of the D-POS

system
Main Function of D-POS System

Figure 2 describe the flow of the currency conversion system. When the system scans the
product using RFID tag, the system will calculate the amount of purchase (in Ringgit). Then the
system will ask the customer card for payment which is in Dirham currency. Here, the system
will do the calculation for currency exchange. After the conversion occurs, the system will check
either the current balance is enough to do purchase or not. If not, the system will alert user to ask
customer to topup their account. Else, the purchase is successful and the amount will be deducted
from the customer account.
START
Buy Item (s)
Scan
Customer Card
Retrieve
Customer
Data
Stored
Conversion
Currency
Conversion
Currency
New Customer
Checking
Balance
Not Enough
Credit Topup
Enough
Item (s) Sold
FINISH
Page 11

CONFERENCE
Figure 2: Main function of the D-POS

system
Use Case Diagram for D-POS System

A use case diagram is a type of behavioral diagram defined by the Unified Modeling Language
(UML). Its purpose is to present a graphical overview of the functionality provided by a system.
Figure 3 shows the use case graphical view for the system.
System
Login
Request for Item

Buy Item
<<include>>
User
Scan Item and Request

Card
Give Card
Customer
<<include>>
Validate Card
Logout
Figure 3: Use Case of the system
Non-Functional Requirement
Page 12

CONFERENCE
Non-functional requirements are the requirements which identify the course or criteria that can
be used to influence the operation of a system rather than specific behaviors. This will specify
how well the performance of the system and its intended functions such as quality requirement.
For this system, the performance is identified as a non-functional requirement. The performance
of the system calculation is considered. The response time is how fast the system calculates the
currency exchange to other currency. In this case, the system should be able to give a correct
value to avoid any confusion. One thing is about the RFID reader read the customer card ID and
product each time it is scanned. Less time taken make high performance system.
Software Requirement
The softwares required for this project development are as stated below:
Table 9: Software Requirement

Software
Description
Microsoft Visual
Visual Basic (VB) is an event driven programming language and
Basic.NET
associated development environment. It is derived heavily from basic

and enables rapid application development (RAD) of graphical user
interface (GUI) applications.
Microsoft Access 2003
Microsoft Access is widely used by small businesses and hobby

programmers to create ad hoc customized systems for handling small
tasks.
Microsoft Office
Microsoft Project is a project management software program developed
Project 2003
by Microsoft which is used to draw project schedule or Gantt Chart.
Page 13

CONFERENCE
Microsoft Office Visio
Microsoft Visio is diagramming software for Microsoft Windows.
2003
Hardware Requirement
The hardwares required for this project development are as stated below:
Table 10: Hardware Requirement for System
No.
Type Of Hardware
Description
1.
Computer/Processor
Minimum Pentium 4 at 2.0 GHz or higher compatible CPU.
2.
Memory
1 GB or higher
3.
Hard disk
80 GB hard disk is recommended with 10 GB free space
4.
Input Device
Mouse, Keyboard
5.
RFID Kit
RFID Reader and RFID cards
CONCLUSION
In this paper we presented a working progress of a prototype system that will use dirham
currency that enables customers to use it in the existing Ringgit market. The card contains
dirham values that allow purchases goods and services even if the prices tagged in other
currencies (Ringgit). The stability of silver price and the depreciation of existing currencies value
will attract customers to use it. This can benefits the customers in a way that they can enjoy the
stabilize value of dirham (silver) compare to the fluctuating value of Ringgit.
Page 14

CONFERENCE
The system itself is a potential application that can coexist with the existing currency system. By
having an alternative currency such as dirham (silver) that proofed to be stable in the long period
of time, this may attract more users to use this with less challenge.
REFERENCES
1. Bailey, WB & Bhaopichitr, K 2002 How Important Was Silver? Some Evidence on
Exchange Rate Fluctuations and Stock Returns in Colonial-Era Asia, Cornell University
Johnson Graduate School of Management Working Paper. Available at SSRN:
http://ssrn.com/abstract=303160 or doi:10.2139/ssrn.303160.
2. Balog, P 1961, History of The Dirham in Egypt from the Fatimid Conquest until the
Collapse of the Mamluk Empire 358/968~922/1517, in Revue Numismatique, ser.VI, 3 pp.
109-146, p. 116.
3. Barisheff, N 2006 August 15, 1971: Inflation Unleashed Viewed 12 January 2010,
<http://www.safehaven.com/article/5145/august-15-1971-inflation-unleashed>
4. Bonpasse, MM 2007 The Single Global Currency - Common Cents for Business in
Proceedings of International Academy of Business and Economics, pp. 46-54.
5. Dziauddin, S & Norlina, A 2008 The applicability of gold dinar in stabilizing commoditys
prices in the Proceedings of the International Business Borneo Conference, Kota Kinabalu,
Sabah.
6. Dziauddin, S & Norlina, A 2008 The applicability of gold dinar in hedging of price of
commodities in the Proceedings of the International Business Borneo Conference, UMS,
Sabah.
7. Dziauddin, S & Norlina, A 2009 The performance of gold dinar in stabilizing price
fluctuation. Jurnal akademik UiTM Johor, 1.
8. Dziauddin, S, Faridah, MD & Ahmad, CY 2009 The Performance of Gold Dinar Basis in
Preserving Customers Benefit: A Comparative Study Of BIMB Financing Products in
Page 15

CONFERENCE
Proceeding at Arab-Malaysian Global Business And Entrepreneurship Conference, Cairo,
Egypt.
9. Dziauddin, S, Norlina, H & Ahmad, CY 2008 Gold dinar: The capability of stabilizing
prices in the Proceeding of East Coast Economic Regional Conference, Kelantan.
10. Dziauddin, S, Norlina, H & Mohd Asyadi, R 2010 Is Dirham Better Performed Than Dinar
In Hedging Fluctuated Prices? Business Management Quarterly Review, 1 (3), 22-30.
11. Dziauddin, S, Norlina, H & Mohd Asyadi, R. 2009 The performance of commodity monies
in hedging fluctuated prices: Is Dirham better than Dinar? in the Proceedings of the 3rd Asia
Pacific Marketing Conference, Kuching, Sarawak, pp. 266-276
12. Freeman, A 2004, Geld (Money). Viewed 14 November 2009, <http://mpra.ub.unimuenchen.de/6722/1/MPRA_paper_6722.pdf >.
13. Hamid A, Halim A, Nordin M, & Azmin N, 2002 Dinar and Dirham Effect On the Banking
Business and its Solution, in the Proceedings of the 2002 International Conference on
Stable and Just Global Monetary System, Kuala Lumpur, pp.139-149.
14. Mahathir M, 2000 Globalization and new realities, Pelanduk Publication, Kelana Jaya.
15. Muhayiddin, MN, & Elsadig MA. 2009, A Dinar / Dirham Backed Electronic Payment
System for Malaysian Market presented at Seminar Ekonomi Islam, Universiti Malaya,
Kuala Lumpur.
16. Muhayiddin, MN, Elsadig MA. & Paul Y. 2010 A Technology Acceptance Study of an
Electronic Dinar Payment System presented at 2nd International Conference on ArabMalaysian Islamic Global Business & Entrepreneurship, Jordan/Syria.
17. Meera, AKM 2002, Hedging with Gold Dinar, The EDGE, Business Daily, August 19-26,
2002, pp.58.
18. Meera, AKM 2002, The Islamic Gold Dinar, Pelanduk Publication, Kelana Jaya.
19. Meera, AKM 2004, The Theft of Nation- Returning to Gold, Pelanduk Publication, Kelana
Jaya.
20. Quint, T & Shubik, M 2004 Gold, Fiat, and Credit, An Elementary Discussion of Commodity
Money, Fiat Money and Credit, Cowles Foundation for Research in Economics, Yale
University.
Page 16

Dirham Currency in Point Sales System

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Dirham Currency in Point Sales System

Загружено:

Авторское право:

Доступные форматы

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

Mohd Hafifi Bin Mohd Supir

Center for Islamic Thought and Understanding,

Faculty of Computer Science and Mathematics,

Mohd Zaki Bin Masud

Ahmad Zaki Mat Ali

Fakulty of Information Technology and

Fakulty of Information Technology and

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

The needs of replacing paper currency with dinar and dirham

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

Dinar Dirham and electronic appliances

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

Username for the registered staff

Password of the registered staff

Level for each different department

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

The number of record

Username that is used to login

Password that is used to login

Staff contact number

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

Price item per unit

Table 5: Data Model for Purchase

Reference for purchase bill

Date purchase made

Table 6: Data Model for Customer Info

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

Customer phone number

Credit balance in their account

Exchange rate per one Dirham

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

Table 8: Data Model for Parameter

Dirham currency value

Ringgit currency value

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

Figure 1: Login function of the D-POS

Main Function of D-POS System

Buy Item (s)

Item (s) Sold

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

Figure 2: Main function of the D-POS

Use Case Diagram for D-POS System

Request for Item

Scan Item and Request

Figure 3: Use Case of the system

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

Table 9: Software Requirement

Visual Basic (VB) is an event driven programming language and

associated development environment. It is derived heavily from basic

Microsoft Access 2003

Microsoft Access is widely used by small businesses and hobby

Microsoft Project is a project management software program developed

by Microsoft which is used to draw project schedule or Gantt Chart.

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

Microsoft Visio is diagramming software for Microsoft Windows.

Minimum Pentium 4 at 2.0 GHz or higher compatible CPU.

80 GB hard disk is recommended with 10 GB free space

RFID Reader and RFID cards

INTERNATIONAL ACCOUNTING AND BUSINESS 2011

INTERNATIONAL ACCOUNTING AND BUSINESS 2011