Foreign Exchange Guide to United Arab Emirates
United Arab Emirates dirham
In this guide we review :
- United Arab Emirates dirham info - general info about the United Arab Emirates dirham
- Travelling in United Arab Emirates - currency & money saving tips
- Buying United Arab Emirates dirham cash online - travel money for United Arab Emirates
- Sending money to United Arab Emirates - save on United Arab Emirates dirham bank transfers to United Arab Emirates
- United Arab Emirates dirham exchange rates - latest info & charts.
United Arab Emirates dirham (AED) general currency information
The United Arab Emirates dirham was introduced on 19 May 1973. It replaced the Qatar and Dubai riyal at par. The Qatar and Dubai riyal had circulated since 1966 in all of the emirates except Abu Dhabi, where the dirham replaced the Bahraini dinar at 1 dirham = 0.1 dinar. Before 1966, all the emirates that were to form the UAE used the Gulf rupee. As in Qatar, the emirates briefly adopted the Saudi riyal during the transition from the Gulf rupee to the Qatar and Dubai riyal. It is pegged to the U.S. dollar for most of the time. Since November 1997, the dirham has been pegged to the 1 U.S. dollar = 3.6725 dirhams, which translates to approximately 1 dirham = 0.272294 dollar.
The name Dirham derives from the Greek word Drachmae, literally meaning handful, through Latin. Due to centuries of old trade and usage of the currency, dirham survived through the Ottoman Empire.
The dirham is pegged to the US dollar at a rate of 3.67 AED to 1 USD. This means that the dirham will always follow the dollar as it appreciates or depreciates. However, keep in mind that it is not pegged to other major currencies such as the GBP or the EUR, meaning that its rate in comparison with other currencies will fluctuate every day.
When you want to understand what affects the exchange rate between the AED and another currency, you need to understand what affects the exchange rate between the other currency and the Australian dollar.
United Arab Emirates currency and money saving tips
The United Arab Emirates (UAE) is an oil-rich country strategically located between Europe and East Asia with a large expat community. The UAE has become a very wealthy country with a strong and stable currency, the dirham.
United Arab Emirates Trip Checklist
Travel money for United Arab Emirates
Save money and time by Ordering your United Arab Emirates dirham online from Travelex, you get better rates and can pick up the AED cash locally or even on travel day at the airport.
Another popular option is to use a Pre-paid Travel Card. Your Debit/Credit Card provider will charge you 2% from market mid-rate, but your bank may also charge an extra 3% as an “Overseas Transaction Charge” plus “Overseas ATM” fees for withdrawing cash.
For card purchases if offered a choice of currencies always select to Pay in United Arab Emirates dirham otherwise you may get much worst exchange rates.
Sending money to United Arab Emirates
The United Arab Emirates (UAE) has a dense network of both domestic and foreign bank branches, which makes overseas money transfers to the UAE and transferring money from the UAE relatively simple. The Emirati dirham (AED) can be freely exchanged into foreign currencies and there are few constraints on foreign capital flows.
When sending money to United Arab Emirates it’s important to compare your bank’s rates & fees with those we have negotiated with our partner money transfer providers. To get a better deal you should follow these 3 simple steps :
- Open an account with a BER reviewed FX provider (id docs may be required)
- You specify the local or United Arab Emirates dirham amount you want to transfer
- Make a local currency domestic transfer for the requested amount to the provider's bank account in your country
- Once your funds are received by the provider the converted AED amount will be transfered to the recipient account you specify in United Arab Emirates.
By comparing the rates of FX specialist providers rates versus your bank's standard rates you can hopefully save around 5% and maybe more - end result is more United Arab Emirates dirham deposited into the recipient bank account in United Arab Emirates and less margins and fees kept by the banks!