UAE Dirham_flag

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?

UAE's Monetary Policy

check

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.

check

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.

check

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.

check

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.

check

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.

background graphic

Important information

Payments in AED to the UAE

Key considerations to bear in mind

check

Payment instructions should contain the beneficiary's IBAN, name, and address.

check

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.

check

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

people-to-people
people-to-people

Currency Reference Guide

Get the full currency reference guide, updated by the iBanFirst currency market experts.
company logo

Bleiben Sie auf dem Laufenden

Erhalten Sie die neuesten FX-Nachrichten, Tipps und Informationen über Best Practices, die Ihnen helfen, Ihre grenzenlose Zukunft zu gestalten.

Die iBanFirst S.A. ist von der Belgischen Nationalbank (unter der Firmennummer 0849.872.824) ordnungsgemäß als Zahlungsinstitut zugelassen und reguliert. Unsere eingetragene Adresse ist Avenue Louise 350, 1050 Brüssel, Belgien. Die von iBanFirst S.A. angebotenen Produkte und Dienstleistungen beschränken sich auf nicht regulierte Devisen-Kassageschäfte sowie lieferbare Devisengeschäfte (feste, flexible und dynamische Devisentermingeschäfte), die von den MiFID- und EMIR-Vorschriften ausgenommen sind, da sie eine zugrundeliegende zukünftige Zahlung für feststellbare Produkte und Dienstleistungen abdecken sollen. iBanFirst S.A. bietet keine Optionen oder anderen Finanzinstrumente zum Zwecke der Investition oder Spekulation an.