Dubai uses the UAE dirham (AED) as its official currency. Known for its stability, the dirham is subdivided into 100 fils and is widely accepted across the United Arab Emirates. Visitors to Dubai will find it easy to exchange money, and credit cards are widely used.
What is the UAE Dirham?
The UAE dirham (AED) is the official currency of the United Arab Emirates, including Dubai. The dirham has been pegged to the U.S. dollar since 1997, maintaining a consistent exchange rate of approximately 3.67 AED to 1 USD. This stability makes the dirham a reliable currency for both residents and tourists.
History of the UAE Dirham
- Introduction: The dirham was introduced in 1973, replacing the Qatar and Dubai riyal.
- Pegging: It has been pegged to the U.S. dollar since 1997, ensuring stability.
- Symbol: The currency symbol is "د.إ" or "AED."
Denominations of the UAE Dirham
The dirham is available in both coins and banknotes. Here’s a breakdown of the denominations:
- Coins: 1, 5, 10, 25, 50 fils, and 1 dirham
- Banknotes: 5, 10, 20, 50, 100, 200, 500, and 1,000 dirhams
How to Exchange Currency in Dubai
Exchanging currency in Dubai is straightforward given the city’s robust financial infrastructure. Here’s how you can do it:
- Banks: Most banks offer currency exchange services with competitive rates.
- Exchange Houses: Widely available in malls and commercial areas, they often provide better rates than banks.
- ATMs: Many ATMs allow you to withdraw cash in dirhams using international cards.
Tips for Currency Exchange
- Compare Rates: Check rates at different places to get the best deal.
- Avoid Airports: Exchange rates at airports tend to be less favorable.
- Use Credit Cards: Widely accepted, offering a convenient alternative to cash.
How Does Dubai’s Currency Affect Tourists?
The stability of the UAE dirham benefits tourists in several ways:
- Predictable Costs: The pegged rate to the U.S. dollar means less fluctuation in costs for travelers.
- Ease of Use: Credit cards are widely accepted, and ATMs are readily available.
- Currency Exchange: Numerous options for exchanging currency at competitive rates.
People Also Ask
What is the best currency to use in Dubai?
While the UAE dirham is the official currency, many places in Dubai accept U.S. dollars. However, you may receive change in dirhams. It’s best to use dirhams for transactions to avoid unfavorable exchange rates.
Can I use my credit card in Dubai?
Yes, credit cards are widely accepted throughout Dubai, including in hotels, restaurants, and shops. Visa and Mastercard are the most commonly accepted, while American Express is also widely used.
Is it better to exchange money in Dubai or before traveling?
It’s generally better to exchange money in Dubai, where you can find competitive rates at exchange houses. Avoid exchanging large amounts at airports where rates are typically higher.
How much cash should I carry in Dubai?
While Dubai is largely cashless, it’s advisable to carry some cash for small purchases or in areas where credit cards may not be accepted. AED 200-500 is usually sufficient for incidental expenses.
Are there any fees for using ATMs in Dubai?
Most ATMs charge a small fee for withdrawals, especially if you’re using an international card. Check with your bank for specific charges that may apply.
Conclusion
Understanding the UAE dirham is essential for anyone traveling to or doing business in Dubai. With its stability and ease of use, the dirham ensures seamless transactions. Whether exchanging currency or using credit cards, visitors will find it convenient to navigate Dubai’s vibrant economy. For more on travel tips and financial advice, explore related topics such as "Best Places to Visit in Dubai" and "Travel Budgeting Tips."
