The Economic System of Islam — Page 98
98 opposed to the institution of interest. I find, besides, that the Soviet government borrows from other governments that lend only on interest. Thus, it is clear Communism is not against interest— indeed, it accepts its use. During this war, the Russian government borrowed from Russian people, which I surmise must have been on interest. If I am correct that Communism is not fundamentally opposed to interest (in fact, various developments leave no other conclusion possible), it must be conceded that the dearth of interest-based transactions in the country is only a temporary phenomenon and a consequence of the extraordinary changes that occurred since the overthrow of the old order. With the expansion of Russian trade and industrial development, the Soviet State too would increasingly resort to interest-bearing loans, just as in other European countries. Accordingly, for the successful prosecution of wars and industrial development, the branches of the state bank will be established in the country, and the institution of interest would take the country from Communism to Capitalism, just as it did in the other West- ern countries. 6. Adoption of Prevailing Exchange Rate System The sixth flaw of the Communist economic system—one that will not let it supersede capitalism—lies in its adoption of the exchange rate mechanism, which emerged out of banks’ manipulation and government interference. Communism not only supports this mechanism, but has chosen to act according to its dictates. As it is, the exchange rate (which is the relative price of two currencies) is