United Arab Emirates Dirham, abbreviated as AED, is the official currency of Dubai and the United Arab Emirates. DHs or DH stand for it. Since 1973, when it superseded all other currencies including the riyals of Dubai and Qatar, the dirham has been in favor.
The Arabic term is where the name dirham comes from. The Ottoman Empire’s use of the dirham as a currency and for centuries of trade allowed it to thrive.
All the emirates that now make up the UAE used to utilize the Gulf rupee, which was fixed at parity with the Indian rupee, before 1966. On June 6, 1966, India decided to weaken the Gulf Riyal against the Indian Rupee. Some states who were still using the Gulf rupee moved to their own or other currencies after refusing to accept the devaluation.
All Trucial States adopted the Qatari and Dubai riyal, which was pegged to the Gulf rupee prior to the devaluation, except Abu Dhabi. These emirates briefly utilized the Saudi riyal during the transition from the Gulf rupee to the Qatar and Dubai riyal. In Abu Dhabi, one Bahraini dinar was equivalent to ten Gulf rupees. In 1973, the UAE launched the dirham as its official currency.
Interesting facts on the dirham
Stuck in time
The IMF’s special drawing rights and the dirham were formally linked on January 28, 1978. In actuality, it is frequently linked to the US dollar. Officials see it as favorable to tie the value of the currency to the dollar because the nation is heavily dependent on the oil industry. To lessen the erratic nature of exports, they peg their currency to the US dollar.
For instance, the GCC nations’ economies were severely impacted by the significant decrease in oil prices that occurred in 2015. Many nations considered weakening their currencies in relation to the US dollar.
Naturally, receiving US dollars from these nations would result in a higher return in terms of dirhams. Since November 1997, the dirham has been pegged to the rate of 1 US dollar to 3.6725 dirhams, or around 0.272294 dollars to 1 dirham.
Basic Features
There are 100 fuloos, which is the plural of the word fils, in the United Arab Emirates. Iraqi dinars, Kuwaiti dinars, Bahraini dinars, and Yemeni rials are all measured in fils.
The only form of the one-unit dirham is a coin. Banknotes are available in the following denominations: 5, 10, 20, 50, 100, 200, 500, and 1000.
These banknotes are printed by the Central Bank of Dubai. On the obverse side of every note is the country’s emblem. The symbols on the currency of the UAE each have a distinct meaning. A golden falcon holding a disc is featured in a traditional Dirham symbol.
Seven stars and seven feathers, which stand for the seven Emirates, surround it in the center.
There are currently banknotes in the following denominations: 10, 20, 50, 100, 200 (rare), 500, and 1,000 dirhams (re-introduced in 2000). They vary in size, the images that are used on the obverse and reverse sides, and the color (brown, purple, green, blue, navy blue, and pink). On the obverse of the banknotes, Eastern Arabic numerals are utilized while Arabic is the language of the text. Eastern Arabic numerals and English text are found on the back of the banknotes.
Exchange rates are also crucial for anyone preparing to travel to, live in, or conduct business in the UAE. Information on the UAE Dirham’s exchange rates against the most common world currencies may be found on the bank’s website using the link below.
Coins
1973 saw the introduction of coins with denominations of 1, 5, 10, 25, 50 fils and up to one dirham. Bronze is used for the lower denominations, and cupro-nickel is used for the higher denominations.
When compared to equivalent coins in Dubai and Qatar denominated in dirhams, the fil coins were the same size. The dimensions of 5 fils, 10 fils, and 50 fils have reduced since 1995. The form of the new 50 fils is curved-equilateral-heptagonal.
Eastern Arabic numbers are used to write the Arabic text on the coins. Since daily transactions rarely involve the 1, 5, or 10 fils coins, all sums are directly rounded up to multiples of 25 fils. The 1 fil coin has almost completely disappeared from circulation and has become rare. Since 1976, the Currency Board of the United Arab Emirates has also produced commemorative coins.
Watermarks
All AED bills have a Falcon watermark on them to prevent counterfeiting. This was done as a security measure to stop the issuance of fake currency.
Money map
The coins and dirham values are lovely, and they stand for many different truths. The dirham’s patterns are astonishingly authentic. Some of this exhibit the nation’s exquisite architectural design.
Others focus on Arabia’s animals, landscapes, and cultural elements. The 5 Dirham currency has an image of Sharjah’s Blue Souk. It serves as the primary marketplace for trade and retail.
Remain unified
A union of the seven emirates of Sharjah, Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, and Umm Al Quwain. These Emirates all used the same, more practical currency. Each of these Emirates used to use the currency of the country that was closest to it. Currently, all citizens of the Emirates utilize the same currency, making transactions simpler for them.
Money Laundering: Offenses and Sanctions
Because the UAE’s national crest is imprinted on its money, it has immeasurable moral worth. Any behavior that is deemed wrong, regardless of its actual value, is illegal.
As a result, using the UAE Dirham is quite convenient, and transactions have gotten simpler ever since the currency was introduced. But they also provide us with a glimpse into the history of the Arabian nation. Over the years, the nation has retained the integrity of its culture, which is often reflected in its currency.
Conclusion
There is much more to this country than meets the eye; don’t be fooled by the skyscrapers. Underneath the glistening shopping centers and dizzying towers, the UAE has a distinct cultural identity that it has proudly maintained over many years of development and expansion.
