What Are Dirhams and How Do They Fit into the Economy?

Dirhams are the official currency of the United Arab Emirates and are widely accepted in the country.

They are pegged to the US dollar at a fixed rate of 1 USD = 3.67 AED, which helps maintain economic stability.

In the UAE, dirhams can be exchanged for other currencies at currency exchange offices, banks, and some hotels.

The Central Bank of the UAE regulates the exchange rate to prevent fluctuations in the value of the dirham.

Expand your knowledge: 200 Dirhams in Rupees

The dirham has a rich history that spans centuries, with its name derived from the Greek word "drachmae", literally meaning "handful". This ancient currency has survived through the Ottoman regime due to centuries of trade and usage.

The dirham was first introduced in 1973, replacing the Qatar riyal, which had been in circulation since 1966 in all the emirates except Abu Dhabi. The initial coin system mirrored the Qatar riyal, with denominations of 1, 5, 10, 25, and 50 fils plus 1 dirham.

For more insights, see: 100 Moroccan Dirham to Usd

In 1995, the smaller denominations and the 1 dirham coin underwent a significant change, shrinking in size. Interestingly, the new 1 dirham coin matched the size of the old 50 fils coin, and the new 50 fils coin became smaller and adopted a unique heptagonal shape.

The first dirham bills were issued in 1973, and subsequent updates introduced new denominations, including 500 dirhams in 1983 and 200 dirhams in 1989. The 1,000 dirham note made a comeback in 2000.

Here's a brief overview of the dirham's coin and banknote denominations:

The dirham was pegged to the International Monetary Fund (IMF) special drawing rights on January 28, 1978, but in practice, it is set to the US dollar.

The United Arab Emirates dirham is a widely used currency, and understanding its different types can be helpful when traveling or doing business in the UAE. The dirham is divided into 100 fils.

Additional reading: Moroccan Dirham News

There are various denominations of dirhams, including 5, 10, 20, 50, 100, 200, 500, and 1,000 dirhams. You can find these denominations in banknotes, which are issued by the Central Bank of the United Arab Emirates.

The UAE Dirham coins come in denominations of 25 fils, 50 fils, and 1 dirham. These coins are made of different materials, with the 1, 5, and 10 fils coins being struck in bronze, and the higher denominations being made of cupro-nickel.

Here's a breakdown of the different types of dirhams:

Coins with a value of less than 10 fils are rarely used in everyday life, so all amounts are rounded up or down to the nearest multiples of 25 fils.

The United Arab Emirates (UAE) dirham is the official currency of the country. It's divided into 100 fils, with coins available in denominations of 1, 5, 10, 25, and 50 fils, as well as 1 dirham.

Check this out: Currency Converter Euro to Moroccan Dirham

The dirham is available in banknote denominations of 5, 10, 20, 50, 100, 200, 500, and 1,000. The Central Bank of the UAE issues these banknotes, which feature the national emblem, a golden falcon with a disk surrounded by seven stars in its center and seven feathers, to combat counterfeiting.

To make change in the UAE, you'll often round amounts up or down to the nearest multiple of 25 fils, as coins with a value of less than 10 fils are rarely used.

The UAE dirham has been pegged to the US dollar since 1997 at a rate of 1 USD to 3.6725 AED, making it one of the world's most stable currencies in terms of exchange rate stability.

Here are the UAE dirham coin denominations:

The UAE dirham has been pegged to the US dollar since 1997 at a rate of 1 US dollar to 3.6725 AED. This fixed exchange rate has made the UAE dirham one of the world's most stable currencies.

The UAE dirham is used in the United Arab Emirates and is also known as the AED. The country's economy is largely reliant on oil exports and natural gas reserves, although it has been making progress towards diversification.

The UAE's GDP per capita was $52,976.80 in 2023, according to The World Bank, and its GDP rose to $514 billion in 2023, according to Statista. This growth has contributed to the country's stable economy.

Here are the different denominations of UAE dirham notes:

The United Arab Emirates dirham has a rich history of banknotes. The Central Bank of the United Arab Emirates is responsible for minting coins and issuing banknotes.

Initially, the UAE Currency Board issued banknotes in denominations of 1, 5, 10, 50, 100, and 1000 dirhams in 1973. The 1 and 100 dirham banknotes were later omitted in 1982.

In 1983, a new 500 dirham note was introduced, followed by a 200 dirham note in 1989. The Central Bank of UAE released a new AED 500 polymer note in 2023 to celebrate the country's 52nd National Day and the hosting of COP28.

The current banknotes in circulation are denominated in 5, 10, 20, 50, 100, 200, 500, and 1000 dirhams. The obverse text on the current notes is written in Arabic with numbers in Eastern Arabic numerals.

The UAE dirham has been pegged to the US dollar for most of its history. This means that its value is directly tied to the value of the US dollar.

Since November 1997, the dirham has been pegged to the US dollar at a rate of US$1 = Dhs 3.6725, which translates to approximately Dh 1 = US$0.272294. This fixed exchange rate has made the dirham one of the most stable currencies in the world.

The dirham has been pegged to the IMF's special drawing rights (SDRs) since January 28, 1978, but in practice, it has been pegged to the US dollar.

In January 2024, the UAE dirham to Moroccan dirham rate started at 2.69 and has increased slightly since then. The current rate is AED 1 = MAD 2.77.

Here's a summary of the exchange rates: