UAE Dirham
The official currency of the United Arab Emirates is the UAE Dirham, commonly abbreviated as AED. The Central Bank of the UAE manages it. The currency code is AED, and the symbol is د.إ.
The UAE Dirham was introduced on May 19, 1973, replacing the Qatar and Dubai riyal at par, following the formation of the United Arab Emirates in 1971. It is divided into 100 fils and is pegged to the US dollar for stability.
Yes
Yes
Pegged to USD
Available currency pairs
Transaction types
FX
Spot
Delivery date
T+1; T+2
FX
Forward
Maximum maturity
24 months
Liquidity
High
Did you know?
The Central Bank of the UAE, founded in 1980, is tasked with directing monetary, credit, and banking policy, plus ensuring bank and monetary stability. The Central Bank's key policy is maintaining the fixed exchange rate of the Dirham against the US dollar, a policy in place since 1997, at a rate of 1 USD = 3.6725 AED. This peg to the US dollar provides predictability in international trade and stability in the financial system.
Key Features of AED
Each Dirham is subdivided into 100 fils. The currency includes several coin and banknote denominations. Coins come in 1, 5, 10, 25, 50 fils, and 1 Dirham. Banknotes are available in 5, 10, 20, 50, 100, 200, 500, and 1000 Dirhams.
Banknotes have a unique and intricate design, reflecting the UAE's culture, history, and achievements. For instance, the obverse side shows the UAE's coat of arms, a falcon (a national symbol), and inscriptions in Arabic, while the reverse side features prominent landmarks, like the Central Bank's headquarters, and English inscriptions.
Expert Opinion
Experts often regard the UAE's monetary policy, particularly its fixed exchange rate regime, as a significant factor in the country's economic stability. By pegging the Dirham to the US dollar, the UAE provides a predictable environment for international businesses and investors. However, it also ties the UAE's monetary conditions to the Federal Reserve's monetary policy. During periods of US dollar strength, this can result in tighter monetary conditions in the UAE.
UAE Regulations
The Central Bank of the UAE has a robust set of regulations to oversee operations involving the Dirham. It ensures currency stability, sets rules on issuance and exchange, and provides guidelines for financial institutions to prevent money laundering and financial terrorism. The Bank also monitors foreign exchange operations to prevent speculative trading that could impact the Dirham's stability.
Important information
Payments in AED to the UAE
Key considerations to bear in mind
Payment instructions should contain the beneficiary's IBAN, name, and address.
Payment Processing Time
The time taken for a payment to reach the recipient's bank account can vary. Domestic transfers within the UAE are typically processed quickly, while international transfers may take a few business days. Consider the processing time when planning your payment to ensure timely delivery. The iBanFirst Payment Tracker can help you track those payments, and ensure a smooth and efficient payment experience.
Fees and Charges
Banks and financial institutions may apply fees and charges when processing international payments. These fees can vary, so it is advisable to check with your bank to understand the charges associated with your transaction. Check out iBanFirst’s Savings Calculator to estimate how much you could save on your next international payment.
Keep in mind
Bank holidays
The UAE observes several public holidays throughout the year, many of which are based on the Islamic lunar calendar and thus vary each year. These holidays are essential cultural elements, impacting business operations, including those related to currency and banking. Notable holidays include:
01
January
New Year's Day
30
November
Commemoration Day
Eid Al Fitr
Marking the end of Ramadan
UAE National Day
2-3 December, celebrating the UAE's formation in 1971
Arafat Day
Eid Al Adha
Feast of Sacrifice
Islamic New Year
Prophet Muhammad's Birthday
Currency Reference Guide
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