Understanding Dirhams Meaning in Modern Times

The dirham is a currency that's deeply rooted in history, but its meaning in modern times is quite different from its origins. In the United Arab Emirates, the dirham is the official currency and is divided into 100 fils.

In the UAE, the dirham is pegged to the US dollar, which means its value is tied to the value of the dollar. This stability is a result of the country's economic policies and its role as a major oil producer.

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The dirham has a rich history that spans centuries. The name dirham is a loan from the Greek δραχμή (drakhmé).

Before 1966, the UAE used the Gulf rupee, which was pegged at parity to the Indian rupee. This currency was used by all the emirates that now form the UAE.

On 6 June 1966, India decided to devalue the Gulf rupee against the Indian rupee, but several of the states still using the Gulf rupee refused to accept the devaluation.

The name dirham is a loan from the Greek δραχμή (drakhmé). This ancient name has survived through centuries of trade and usage of the currency.

Before 1966, the UAE was using the Gulf rupee, which was pegged at parity to the Indian rupee. This was a common currency used by all the emirates that now form the UAE.

India decided to devalue the Gulf rupee against the Indian rupee in 1966, but several emirates refused to accept the change. This led to a brief period of currency confusion.

The Qatar and Dubai riyal was adopted by several emirates as a replacement for the Gulf rupee. This currency was equal to the Gulf rupee prior to the devaluation.

The UAE adopted the UAE dirham as its currency in 1973, replacing the Qatar and Dubai riyal and other currencies.

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The United Arab Emirates (UAE) introduced coins in 1973 with denominations of 1, 5, 10, 25, and 50 fils and 1 dirham.

These coins are made of bronze for the lower denominations and cupro-nickel for the higher ones. The fils coins are similar in size and composition to those of Qatar and Dubai.

The value and numbers on the coins are written in Eastern Arabic numerals and the text is in Arabic. The 1, 5, and 10 fils coins are rarely used in everyday life, so amounts are often rounded up or down to the nearest multiples of 25 fils.

The 1 fils coin is particularly rare and doesn't circulate much. In fact, it's a bit of a collector's item. This can sometimes lead to confusion when making change, as the old 50 fils coin looks almost identical to the modern 1 dirham coin.

Here's a breakdown of the different coin denominations and their characteristics:

There are several types of dirhams used in different countries. The Kuwaiti dirham is worth one tenth of a Kuwaiti dinar, and 100 dirhams equal one dinar in Libya and Tunisia.

In Morocco, the dirham is the basic unit of money, equal to 100 centimes. The United Arab Emirates also uses a dirham, which is equal to 1,000 fils. In Qatar, 100 dirhams equal one riyal.

Here's a list of the different types of dirhams mentioned in the article: