The Value of Dubai Currency - As you may already know that
the standard of living in Dubai is quite high. Hence visiting and living
in Dubai can be quite expensive.
In Dubai you will find several reasons to spend your
money. Thus, you will realize that you can be at an advantage if you have
a sound knowledge about Dubai currency.
Value & features
You may
be aware of the fact that the Dubai's currency is known as Dirham and is
denote by “Dh”. It is denoted by AED and called Arab Emirate Dirham in the
global market. You can further divide each Dirham into 100 parts called
fils. The currency is connected to the International Monetary Fund’s
Special Drawing Right.
Since the latter part of the year 1980
the currency has been kept constant with respect to the US Dollar and is
valued at Dh 3.67 as being equivalent to one US Dollar. You may have
notice that the beginning of the year saw the rate of Dirham at 6.56
against the Sterling (the currency of the United Kingdom).
You will see that the denominations of
the paper notes are 5, 10, 50, 100, 200 and 500 Dirham and the coins are
available in denominations of 1 Dirham and 5, 10, 25 an 50 fils. No
control is imposed over the exchange of the Dubai currency and other
foreign currencies and you can therefore convert it freely. You can do the
exchanges at banks and exchange houses.
The Currency Board
In Dubai
the Currency Board found its origin on May 19, 1973 with the purpose of
primarily issuing the Dirham and for maintaining the parity. Initially the
Dirham was valued at 3.94737 Dirham against the US dollar and the margin
could vary by one per cent.
After February 23, 1974 the margin
variation was expanded to 2.5 per cent. You will see that the Dubai
Currency Board also publishes the best rates of the purchase and sale of
foreign currencies at regular intervals. The connection of the Dirham to
the Special Drawing Right was established on January 28, 1978.
It was fixed at 4.7619 Dirham for every
Special Drawing Right with a fluctuation of 2.25 per cent. The US Dollar
was made to intervene with the rate of exchange being fixed at 3.88 Dirham
against every US Dollar.
