Islam's view of Fractional Reserve Banking

Walaikum Assalam,

Fractional Reserve Banking is no different than how the Central Banks used to lend more than their actual reserve golds back in the day. Fiat currency in its inherent nature comes from nothing. 

That being said, while the procedure itself is interest bearing, it does not deprive the created money from its legal tender. So while islamic Country will not be allowed to employ fractional reserve banking to create money (although many may very well do); it does not mean that the money that is in your pocket is riba'.

Imagine if they did not have ANY fractional reserve ratio in place as well and Imagine that instead they had a simple stupid rule that banks can create money out of nothing for no aparent reason, an that this power is recognized by their respective state/govt. Then too such a bogus money will have a purchase power, i.e attributed value for trade. 

Since in our current system we cannot influence and change this system, due to umoom al bulwa usage of such fiat currency is shar'an permissible. Although, the rules if riba' will still apply to your individual's dealing with that money.

Wassalam