Abstract
The aim of the research is to analyze the idea of creating money in the light of conventional economy and to indicate its relation to economic activity. In addition to estimating the possibility of creating money in Islamic banks, and abstracting the determinants of creating money in the Islamic economy. The research relied on the descriptive and analytical approach in addition to the deductive approach.
The study concluded several results, the most important of which is that the idea of creating deposit money enables banks to provide more loans than their actual deposits. The economic analysis indicates the effect of money creation on money supply and the general level of prices. Money in the Islamic economy has basic functions (a medium of exchange, a measure of the values of things, a reserve of values), One of its conditions is that it is free from legal contraceptives, and stability. One of the results is that islamic commercial bank's ability to create money cant be compared with the conventional commercial bank's ability. And it is agreed that the issuance of legal money should be the exclusive to the state, but it is better to be created deposit money by private Islamic banks, such that leaving the creation of money deposits to state-owned banks is not consistent with the function for which the central banks were established, It is also conditional on the existence of monetary policy tools that enable the central bank to control the ability of Islamic commercial banks to create deposit money.