- Business and Employment»
- Business & Society
Dubai Currency and Exchange Rate
Dubai was at one time a small non descript fishing village that was a stopover for Indian pilgrims to Saudi Arabia, but the discovery of oil changed al that and the UAE with its pivot Abu Dhabi are now among the most affluent nations in the world.
Dubai is located at one edge of the Arabian Peninsula. It is a part of the United Arab Emeritus and its currency is known as Dirham. It is denoted by the symbol ‘Dh’. Dirham notes are available in denominations of 5, 10, 20, 50, 100, 200, 500, and 1000. Each dirham is divided into 100 fills, thus they follow a decimal classification.
In Dubai, coins are also available and they come in denominations of 1, 50, 25, 10 and 5 fills. However, the value of the monetary unit is written only in Arabic numerals which are not difficult to memorize and understand. But one will have to get familiar with the Arabic numerals.
The Dubai currency symbol is also displayed as AED in addition to Dhs at many outlets and places. The Dubai currency is strong and despite the recent meltdown is still having value. The foreign currency which is with you can be easily exchanged to the currency of Dubai. There are many outlets for currency exchange like the major banks and private financial outlets in Dubai. Most of the hotels where you stay will also only be glad to help you out with currency exchange. The AED is the official denomination of the Dubai currency in the global market. Dubai currency is known as Arab Emirate Dirham in the global market and is denoted by AED.
The Dubai currency exchange rate is part of the global monetary system. Thus the International Monetary Fund's Special Drawing Right regulates and manages the evaluation of Dirham- the currency of Dubai in the global market.
The Dubai currency has over the decade’s maintained parity with the US Dollar. In 1980 that year the exchange rate of the one US dollar to the DH were 3.67. However, before 1980 the rates of the Dirham vis a vis the dollar had fluctuated as the Dubai economy had not stabilized. As things stand Dubai currency can be exchanged all over the world banks and money change outfits.
Looking back into a bit of history one can learn that In Dubai the Currency Board was set up on 19 th May 1973. The currency board was tasked with the authority to issue the Dirham currency as well as to maintain parity with the global rate of inflation.
The exchange rate for the United Arab Emirates Dirham is updated regularly. The last updating was on 29 Jan 2010 from the International Monetary Fund.
Dubai has hardly any regulations concerning currency and the result is that foreign currency of almost any denomination can be readily exchanged in the UAE. The dirham is index linked to the dollar and the official exchange rate is Dh3.671 = US$ 1.00. The best exchange rates are generally available at private moneychangers found throughout the UAE.Shopping centers and shops will readily exchange currency of most nations.
The exchange of currency is well looked after in the UAE .This is associated with western union which has multiple branches all over the UAE.Thomas Cook and its local representatives are also well represented.
The Dubai currency which in the early fifties was considered weak has now gained global recognition with the billions that are pouring into the state and the economy is on an extremely strong footing. The Dubai currency is considered a global currency. It is much appreciated in India where the official exchange rate is AED 1= 18 INR. Thus expatriate Indian workers can afford to send a lot of money home.
Dubai is also heading to be a financial center and after the exit of the UK from the EU, there is a flight of capital to Dubai.