The currency of the United Arab Emirates (UAE) is the UAE dirham, abbreviated AED (or Dhs locally). Its official currency code is ISO 4217: AED.
Introduction to the UAE Dirham
The UAE dirham was introduced on May 19, 1973, replacing the Qatari and Dubai riyals, which were previously used in the region. It was initially pegged to the British pound but later switched to the U.S. dollar. Today, the dirham is fixed at an exchange rate of approximately 3.6725 AED to 1 USD. This peg ensures stability, making the UAE an attractive hub for trade and investment.
Key Facts About the UAE Dirham (AED):
- Symbol: د.إ (Arabic) or Dhs (Latin script).
- Subunit: 1 dirham = 100 fils.
- Coins: 1, 5, 10, 25, 50 fils, and 1 dirham.
- Banknotes: 5, 10, 20, 50, 100, 200, 500, and 1,000 dirhams.
Each banknote features UAE landmarks, historical figures, and elements of its culture and heritage. Designs are updated regularly to reflect the country’s progress and rich history.
Interesting Facts:
- Pegged to the US Dollar: The UAE dirham has been fixed at 3.6725 AED = 1 USD since 1997, ensuring stability.
- Widely Accepted: The dirham is the only legal tender in the UAE, though some tourist areas may accept USD or EUR (often at poor rates).
- Currency Design: UAE banknotes showcase landmarks like the Burj Khalifa, Sheikh Zayed Grand Mosque, and traditional Arabic calligraphy.
Where to Exchange Currency in the UAE?
- Banks (best rates but may charge fees).
- Licensed exchange centers (competitive rates, e.g., Al Ansari Exchange, UAE Exchange).
- Airports and hotels (convenient but offer low rates).
The UAE dirham symbolizes the country’s economic strength and rapid modernization. Whether visiting for tourism, business, or other purposes, the dirham is integral to the UAE experience.