Dubai is one of the most popular tourist destinations in the world, and it’s also a major business hub. It’s essential to understand the currency used in Dubai before traveling or doing business in this city.
Currently, the currency of Dubai is the United Arab Emirates Dirham (AED). The AED is a stable currency that has been pegged to the US dollar since 1997. This means that its value is fixed at 3.67 AED per US dollar and remains relatively stable against other major currencies.
What is the history of UAE dirham?
The UAE dirham was first introduced in 1971 after the formation of the United Arab Emirates. Before that, various currencies were used in different emirates, including Indian rupees, British pounds, and Gulf rupees.
Initially, the UAE dirham was pegged to the International Monetary Fund’s Special Drawing Rights (SDR). However, after experiencing inflation in the early 1980s due to rising oil prices and increased government spending, it was pegged to the US dollar.
What are the denominations of UAE dirham?
The UAE dirham comes in six denominations: 5, 10, 20, 50, 100, 200, 500 and 1,000. There are also coins available in denominations of fils – a subunit of AED – which include fils1 (bronze), fils5 (silver), and fils10 (silver).
- The AED5 note features an illustration of a traditional dhow.
- The AED10 note features an illustration of a fort.
- The AED20 note features an illustration of Al Ain’s Jahili Fort.
- The AED50 note features an illustration of Dubai’s iconic Burj Khalifa tower.
- The AED100 note features an illustration of the Dubai Creek.
- The AED200 note features an illustration of the Dubai World Trade Centre.
Where to Exchange Currency in Dubai
Dubai has many currency exchange offices, and it’s easy to exchange foreign currencies into UAE dirhams. One can find currency exchange services at the airport, shopping malls, and major tourist attractions.
It’s important to compare the exchange rates offered by different exchange offices before making any transactions. Some currency exchange offices may charge a commission or additional fees for their services.
Using Credit Cards in Dubai
Credit cards are widely accepted in Dubai, especially in major hotels and restaurants. Visa and Mastercard are the most commonly accepted credit cards, and American Express is also accepted but not as widely as the former two.
It’s always a good idea to inform one’s bank before traveling to avoid any issues with using credit cards abroad. Additionally, some banks may charge foreign transaction fees when using credit cards abroad.
In Conclusion
In summary, the currency of Dubai is the United Arab Emirates Dirham (AED).
It comes in six denominations: 5, 10, 20, 50, 100, 200, 500 and 1,000. Visitors can easily exchange their foreign currencies for AED at various exchange offices located throughout Dubai. Credit cards are widely accepted in Dubai but visitors should check with their bank regarding foreign transaction fees.