What Is the Currency in Dubai Called?
Dubai, one of the most popular tourist destinations in the world, is located in the United Arab Emirates (UAE). As a traveler planning a trip to this vibrant city, it is essential to familiarize yourself with its currency. The official currency of Dubai is called the United Arab Emirates dirham, often abbreviated as AED.
History of the Dirham
The dirham was first introduced in 1973 when the United Arab Emirates was formed. Before that, other currencies such as the Gulf rupee and the Bahraini dinar were used in different parts of the UAE. However, with the establishment of a unified nation, a new currency was needed.
The dirham was chosen as it has historical and cultural significance. Dirham derives from the Greek word “drachma,” which means “handful.”
It was originally used as a unit of weight for precious metals like silver and gold. Over time, it became associated with various Middle Eastern currencies.
Denominations
The dirham is divided into subunits called fils. One dirham is equal to 100 fils. Coins are available in denominations of 1, 5, 10, 25, and 50 fils, while banknotes come in denominations of 5, 10, 20, 50, 100, 200, 500 and 1,000 dirhams.
Note: When dealing with coins in Dubai’s marketplaces or smaller establishments like taxis or street vendors, it’s important to note that some coins may not be commonly used due to rounding practices.
Exchange Rate
The exchange rate between the United Arab Emirates dirham and other currencies fluctuates based on international foreign exchange markets. It is advisable to check the current exchange rates before your trip. Most major banks in Dubai offer currency exchange facilities, and you can also find authorized money changers throughout the city.
Useful Tips for Handling Currency in Dubai
- Carry some cash in small denominations for convenience, especially when visiting local markets or smaller establishments that may not accept cards.
- ATMs are widely available throughout Dubai, allowing you to withdraw dirhams using your debit or credit card.
- Major credit cards such as Visa and Mastercard are widely accepted in hotels, restaurants, shopping malls, and other tourist establishments.
- Notify your bank before traveling to Dubai to avoid any issues with card usage due to unfamiliar transactions.
Conclusion
In conclusion, the currency in Dubai is called the United Arab Emirates dirham (AED). Understanding its history, denominations, and exchange rates will help you navigate your financial transactions during your visit. Whether you choose to carry cash or rely on cards, it’s important to be prepared and informed about handling currency in Dubai.