Understanding Emirati Currency and Its History

The Emirati currency, also known as the dirham, has a rich history that dates back to the 1970s. The United Arab Emirates (UAE) adopted the dirham as its official currency in 1973.

The dirham was pegged to the US dollar at a fixed rate of 3.67 dirhams per dollar, which has remained relatively stable over the years. This stability has made the dirham a strong and reliable currency.

The UAE government has taken steps to promote the use of electronic payment systems, such as credit and debit cards, as well as mobile payment apps.

The UAE Dirham has a rich history that dates back to the 1970s. The dirham was introduced in 1973, replacing the Qatar riyal and the Bahraini dinar, which was used in Abu Dhabi.

Before the dirham was introduced, the Gulf rupee was the main currency used in the UAE, but it was devalued in 1966, leading to a switch to other currencies. The Qatar and Dubai riyal was adopted by several emirates, while Abu Dhabi used the Bahraini dinar.

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The initial coin system of the dirham mirrored the Qatar riyal, with denominations of 1, 5, 10, 25, and 50 fils, plus 1 dirham. The lower-value fils coins were made of bronze, while others used cupronickel.

In 1978, the dirham was pegged to the International Monetary Fund (IMF) special drawing rights, but in practice, it is set to the US dollar. This means that the dirham's value is closely tied to the value of the US dollar.

Today, the official abbreviation for the United Arab Emirates Dirham is 'AED', although unofficial abbreviations like 'Dh' or 'Dhs' are also used.

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Emirati currency comes in various forms, including coins and banknotes. The official currency of the UAE is the United Arab Emirates Dirham, abbreviated as AED.

The UAE Dirham is divided into 100 fils, with coins available in denominations of 1, 5, 10, 25, and 50 fils, as well as 1 AED. The 1, 5, and 10 fils coins are rarely used in everyday life, so amounts are often rounded up or down to the nearest multiple of 25 fils.

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Coins can be found in various shapes and sizes, with the 50 fils coin being curve-equilateral-heptagonal shaped. The value and numbers on the coins are written in Eastern Arabic numerals and the text is in Arabic.

Here are the available UAE coin denominations:

Banknotes are also available in various denominations, including 5, 10, 20, 50, 100, 200, 500, and 1000 dirhams.

The official currency of the United Arab Emirates is the UAE Dirham, also known as the Emirati Dirham.

It was put into circulation on May 19th, 1973, replacing the Bahraini Dinar in Abu Dhabi and the Qatar-Dubai Riyal in Dubai and other Emirates.

The UAE Dirham is pegged to the US Dollar with a fixed exchange rate of 1 USD = AED 3.67, making it a stable currency.

The official abbreviation for the United Arab Emirates Dirham is ‘AED’, but you may also see ‘Dh’ or ‘Dhs’ used unofficially.

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The United Arab Emirates Dirham coins come in various denominations, including 1, 5, 10, 25, and 50 fils, as well as 1 dirham.

The coins are made of different materials, with the lower-denominated coins (1, 5, and 10 fils) being struck in bronze, while the higher-denominated coins are made of cupronickel.

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 value and numbers on the coins are written in Eastern Arabic numerals, and the text is in Arabic.

Here is a list of the UAE Dirham coins, including their values and technical parameters:

The dirham is pegged to the US dollar, with a fixed exchange rate of 1 USD = AED 3.67.

The United Arab Emirates dirham has been pegged to the U.S. dollar since November 1997 at a rate of US$1 = Dhs 3.6725, which translates to approximately Dh 1 = US$0.272294.

The dirham was officially pegged to the IMF's special drawing rights (SDRs) on January 28, 1978, but in practice, it has been pegged to the U.S. dollar for most of the time.

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The UAE dirham is considered one of the world's most stable currencies in terms of exchange rate stability, thanks to its peg to the U.S. dollar.

Here are the AED exchange rates for popular currencies: USDINRPKREURGBPPHPCADMXNFrom AED0.2722723.6043075.867500.265900.2213715.913500.399815.76901To AED3.672850.042370.013183.760814.517240.062842.501170.17334

The UAE dirham has been pegged to the U.S. dollar at a fixed rate since 1997, with one U.S. dollar being worth 3.67 UAE dirhams.

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The United Arab Emirates has a gross domestic product of about $421 billion in 2019, ranking 25th on the World Economic Forum’s Global Competitiveness Index, which was discontinued in 2023.

Its economy is heavily reliant on oil exports and natural gas reserves, although they have been making steady progress toward diversification.

The UAE dirham is considered one of the world's most stable currencies in terms of exchange rate stability, pegged to the United States dollar since 1997 at a rate of 1 U.S dollar to 3.6725 AED.

Pegging its currency to the US dollar helps reduce the volatility of its exports, as oil prices are denominated in US dollars.

The UAE government maintains a current account surplus to its GDP, which helps maintain the peg.

However, the peg can also work against government strategy, as seen in 2015 when oil prices collapsed and reduced revenues for Gulf Cooperation Council countries.

The country's GDP rose to $514 billion in 2023, according to Statista, with a GDP per capita of $52,976.80 in 2023, according to The World Bank.

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The United Arab Emirates dirham is the official currency of the UAE and is pegged to the US dollar at a fixed exchange rate of 1 USD = AED 3.67. This means that the dirham is considered one of the world's most stable currencies in terms of exchange rate stability.

The dirham is made up of 100 fils, similar to a US dollar being made up of 100 cents. This division into smaller units makes transactions easier and more convenient.

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UAE coin denominations are 1, 25, and 50 fils, but coins with a value of less than 10 are rarely used. This is because the smaller denominations are not as practical or common in everyday transactions.

The dirham's initial coin system mirrored the Qatar riyal, with denominations of 1, 5, 10, 25, and 50 fils plus 1 dirham. This system has undergone changes over the years, with the most recent update in 1995.

The dirham's banknotes come in AED 5, 10, 20, 50, 100, 200, 500, and 1,000 denominations. A new 50 dirham note was launched on the occasion of the UAE's Golden Jubilee, and a new AED 500 polymer note was released in 2023 to celebrate the hosting of COP28 and the country's 52nd National Day.

The Central Bank of the United Arab Emirates issues the country's banknotes, and several watermarks are used to combat counterfeiting. The national emblem, a golden falcon with a disk surrounded by seven stars in its center and seven feathers to represent each of the Emirates, appears on the obverse of each note.