Dubai currency is known as Arab Emirate Dirham in the global market and is denoted by AED.
Locally the Dubai currency is denoted by ‘Dh’ and called Dirham. Each Dirham is divided into 100 units and each of them is known as fil. The International Monetary Fund’s Special Drawing Right regulates the currency of Dubai, which manages the valuation of Dirham in the global market.
The Dubai currency has been maintaining a constant rate with respect to the US Dollar since the later half of the year 1980. One US Dollar equates to Dh 3.67 in the global valuation. Before 1980, the rates of Dubai currency fluctuated with respect to the global market. At first the Dirham was valued at 3.94737 Dirham against the US dollar.
The margin varied frequently by one percent. After 23 rd February in the year of 1974, the margin between Dirham and US Dollar was expanded to 2.5 percent.
The denominations available for the paper notes are 5, 10, 50, 100, 200 and 500 Dirham and the available denominations of the coins are 1 Dirham alongside 5, 10, 25 and 50 fils. Dubai currency can be exchanged with currencies of other parts of the world in banks and exchange houses.
In Dubai the Currency Board was originated on 19 th May, 1973 primarily for two reasons. The Currency Board in Dubai looks after:
- issuing the Dirham currency
- maintaining the parity with the global inflation rate