UAE Dirham (AED)

Basic Concepts of the UAE Dirham

The UAE Dirham is the legal tender of the United Arab Emirates, with the ISO code AED, and is issued and managed by the Central Bank of the UAE. The currency symbol is د. إ, and the secondary unit of currency is the Fir, with 1 Dirham = 100 Fir.

Countries and regions of use

The UAE Dirham is mainly circulated throughout the United Arab Emirates, including the seven emirates of Dubai, Abu Dhabi, and Sharjah. It is also used as an auxiliary means of payment in the border areas of some neighboring countries.

Units and denominations

The denominations of banknotes include 5, 10, 20, 50, 100, 200, 500 and 1,000 dirhams, and the denominations of coins are 1 dirham and 1, 5, 10, 25 and 50 fils. Of these, Dh100 is the most commonly used banknote, and of the coins, Dh1 and 50 fils are the most frequently used.

Historical Background

The UAE Dirham officially replaced the Qatari/Dubai Riyal in 1973. Its name is derived from the Greek currency unit "drachma", and its value was pegged to the Special Drawing Rights (SDRs) for a long time, but since 1997 it has been changed to a fixed exchange rate system of 1 USD ≈ 3.6725 dirhams, which effectively maintains the stability of the currency and its international credibility.

Anti-counterfeiting features

The new version of the dirham adopts multiple anti-counterfeiting technologies such as color-changing ink, holographic film, watermarks and miniature characters, etc. The front side of the Dh500 banknote bears a falcon motif, while the back side displays a traditional dhow, which embodies the fusion of the UAE's cultural heritage and modern development.

International Status

As an important trade settlement currency in the Middle East, the UAE dirham has a place in the world's foreign exchange reserves. Its stable exchange rate policy has helped Dubai become an international financial center, and it is widely used in cross-border trade and tourism.