United Arab Emirates: UAE Dirham
United Arab Emirates uses Dirham as its currency. The dirham is one of the most valuable currencies across the globe. The ISO 4217 code of the currency is AED. The origination of the currency was in 1971. Before the dirham was introduced in the United Arab Emirates the country was using Riyal as the currency. Riyal was the official currency of Qatar and Dubai and it was also adopted by UAE. Presently the usage of riyal is completely abolished in UAE and the dirham is the official currency which is used for monetary transactions.
About UAE Currency
The first currency which was used in UAE was the Gulf rupee. The Gulf rupee was used in the UAE till 1966. Later after the release of the riyal in UAE¸ the usage of Gulf rupee was curbed. Except Abu Dhabi¸ all the states which comprised to form UAE were using the riyal. Abu Dhabi was the only country which was using Bahraini dinar. On January 28¸ 1978¸ dirham was officially announced as the currency of the UAE. In November of 1997¸ the dirham was pegged with the US dollar at the rate of 1USD = 3.6725 dirham.
The meaning of the word dirham in Latin is handful. The literal word dirham is derived from the Greek word Drachmae. It was used in the Ottoman regime and has survived through centuries and finally came into use officially in United Arabs Emirates.
Each Dirham is subdivided into 100fills.
UAE Currency Banknotes
The banknotes of UAE currency is considered to be issued by the Central Bank of United Emirates. The first banknotes were issued in 1973. The denominations in which the banknotes are issued are 1¸ 5¸ 10¸ 50¸ 100 and 1000 dirham. This was the first series of the banknotes which were introduced the banknotes. In 1982¸ a second series of banknotes were introduced by the bank which excluded the 1 and 1000 dirham notes. The 500 and 200 dirham notes were introduced in 1983 and 1989 respectively. In 2000¸ 1000 dirham notes were reintroduced as the need for higher denomination notes became a necessity.
Currently the denominations in which the banknotes are present are 5 (brown)¸ 10 (green)¸ 20 (light blue)¸ 50 (purple)¸ 100 (pink)¸ 200 (green/brown)¸ 500 (navy blue) and 1000 (greenish blue) dirham.
UAE Currency Coins
The first coins were minted in 1973. The denominations in which the coins were minted are 1¸ 5¸ 10¸ 25¸ 50 fils¸ and 1 dirham. The 1¸5 and 10 coins were minted in bronze and the rest of the coins were minted in cupronickel material. They had the same dimension as of the coins used in Qatar and Dubai. Later I 1995¸ the size of the 50fil and 1 dirham coins size was reduced. The text and value of the coins is printed in Eastern Arabic numerals. The text is mostly written in Arabic.
As the older version of the coins is also in circulation¸ there has been lot of mistake in recognizing the 50fil coin and 1 dirham coin.
Currency Exchange Rate to other World Famous Currencies like US¸ UK etc.
The present value of AED with respect to other major currencies of the world is given below.
1AED= 0.272264 USD
1AED= 0.167273 GBP
1AED= 0.197461 EUR