View source for Finance:United Arab Emirates dirham

{{Short description|Currency of the United Arab Emirates}}
{{Infobox currency
| name = Emirati dirham
| local_name = درهم إماراتي
| local_name_lang = ar
| image_1 = UAE Dirham.png
| image_title_1 = Obverse of an Emirati one dirham coin
| iso_code = AED
| using_countries = United Arab Emirates
| inflation_rate = 2.5%
| inflation_source_date = ''[https://www.webcitation.org/5mGrLAu4A The World Factbook]'', 2011 est.
| pegged_with = {{wipe|United States dollar}}<ref>{{cite web|title=Annual Report 2014|url=http://www.centralbank.ae/en/pdf/reports/CBUAEAnnualReport2014_en_new.pdf|access-date=14 June 2016|archive-date=5 April 2016|archive-url=https://web.archive.org/web/20160405020355/http://centralbank.ae/en/pdf/reports/CBUAEAnnualReport2014_en_new.pdf|url-status=dead}}</ref> <br />
US$1 = Dhs&nbsp;3.6725
| subunit_ratio_1 = {{frac|1|100}}
| subunit_name_1 = fils ({{lang|ar|فلس}})
| symbol = {{lang|ar|د.إ}}
| symbol_comment = in Arabic<br/>{{big|Dh/Dhs}} or {{big|1=DH}} in Latin
| frequently_used_coins = 25, 50 fils, Dh1
| rarely_used_coins = 1, 5, 10 fils
| used_banknotes = Dhs5, Dhs10, Dhs20, Dhs50, Dhs100, Dhs200, Dhs500, Dhs1,000
| issuing_authority = Central Bank of the UAE
| issuing_authority_website = {{URL|https://www.centralbank.ae}}
}}

The '''Arab Emirates Dirham''' ({{IPAc-en|ˈ|d|ɪər|(|h|)|ə|m}};<ref>{{Cite book |last=Stevenson |first=Angus |url=https://books.google.com/books?id=anecAQAAQBAJ&dq=%22%CB%88d%C9%AA%C9%99r%C9%99m%22+definition&pg=PA496 |title=Oxford Dictionary of English |date=2010-08-19 |publisher=OUP Oxford |isbn=978-0-19-957112-3 |pages=496 |language=en}}</ref> {{lang-ar|درهم إماراتي}}, abbreviation: '''د.إ''' in Arabic, '''Dh''' (singular) and '''Dhs''' (plural) or '''DH''' in Latin; [[ISO 4217|ISO code]]: '''AED''' is the official currency of the [[Place:United Arab Emirates|United Arab Emirates]]. The dirham is subdivided into 100 {{nowrap|fils (فلس)}}. It is pegged to the United States Dollar at a constant exchange rate of approximately 3.67 AED to 1 USD.

== History ==

The name ''[[Dirham|dirham]]'' is a loan from the Greek δραχμή (drakhmé). Due to centuries of trade and usage of the currency, ''dirham'' survived through the [[Place:Ottoman Empire|Ottoman Empire]].

Before 1966, all the emirates that now form the UAE used the Gulf rupee, which was pegged at parity to the Indian rupee. On 6 June 1966, India decided to devalue the Gulf rupee against the Indian rupee. Not accepting the devaluation, several of the states still using the Gulf rupee adopted their own or other currencies. All the Trucial States except [[Place:Abu Dhabi|Abu Dhabi]] adopted the [[Finance:Qatari riyal|Qatar and Dubai riyal]], which was equal to the Gulf rupee prior to the devaluation. These emirates briefly adopted the [[Finance:Saudi riyal|Saudi riyal]] during the transition from the Gulf rupee to the Qatar and Dubai riyal. [[Place:Abu Dhabi|Abu Dhabi]] used the [[Finance:Bahraini dinar|Bahraini dinar]], at a rate of 10 Gulf rupees = 1 dinar. In 1973, the UAE adopted the UAE dirham as its currency. [[Place:Abu Dhabi|Abu Dhabi]] adopted the UAE dirham in place of the Bahraini dinar, at 1 dinar = 10 dirhams, while in the other emirates, the Qatar and Dubai riyal were exchanged at par.

== Coins ==
In 1973, coins were introduced in denominations of 1, 5, 10, 25, and 50 fils and 1 dirham. The 1, 5, and 10 fils are struck in bronze, with the higher denominations in [[Chemistry:Cupronickel|cupro-nickel]]. The fils coins were the same size and composition as the corresponding Qatar and Dubai dirham coins. In 1995, the 5 fils, 10 fils, 50 fils, and 1 dirham coins were reduced in size, with the new 50 fils being curve-equilateral-heptagonal shaped.

The value and numbers on the coins are written in [[Eastern Arabic numerals]] and the text is in [[Social:Arabic language|Arabic]]. The 1, 5, and 10 fils coins are rarely used in everyday life, so all amounts are rounded up or down to the nearest multiples of 25 fils. The 1 fils coin is a rarity and does not circulate significantly. In making a change there is a risk of confusing the old 50 fils coin for the modern 1 dirham coin because the coins are almost the same size.

Since 1976 the Currency Board of the United Arab Emirates has minted several commemorative coins celebrating different events and rulers of the [[Place:United Arab Emirates|United Arab Emirates]]. For details, see Commemorative coins of the United Arab Emirates dirham.
{| class="wikitable" style="font-size: 90%"
|+ 
|-
! colspan="2" | Image !! rowspan="2" | Value !! colspan="5" | Technical parameters !! colspan="2" | Description
|-
!Obverse
!Reverse
! Diameter !! Thickness !! Weight !! Edge 
!Shape!! Obverse !! Reverse
|- 
|
|
| 25&nbsp;fils
| 20&nbsp;mm
| 1.5&nbsp;mm 
| 3.5 g
|Milled
|Circular
| A Gazelle facing left, with Lunar Hijri and [[Gregorian calendar|Gregorian]] year of mint below.
| Lettering: "{{lang|ar|الامارات العربية المتحدة}}", below it "{{lang|ar|٢٥}}", below it "{{lang|ar|فلساً}}" and below it "UNITED ARAB EMIRATES"
|- 
|
|
| 50&nbsp;fils
| 21&nbsp;mm
| 1.7&nbsp;mm
| 4.4 g
| Smooth
|Heptagon
| Three [[Engineering:Drilling rig|oil derrick]]s, with Lunar Hijri and [[Gregorian calendar|Gregorian]] year of mint below.
| Lettering: "{{lang|ar|الامارات العربية المتحدة}}", below it "{{lang|ar|٥۰}}", below it "{{lang|ar|فلساً}}" and below it "UNITED ARAB EMIRATES"
|- 
|[[File:UAE Dirham.png|150px]]
|
| Dh&nbsp;1
| 24&nbsp;mm
| 2&nbsp;mm
| 6.1 g
| Milled
|Circular
| A [[Engineering:Dallah (coffee pot)|Dallah]], with Lunar Hijri and [[Gregorian calendar|Gregorian]] year of mint below.
| Lettering: "{{lang|ar|الامارات العربية المتحدة}}", below it "{{lang|ar|١}}", below it "{{lang|ar|درهم}}" and below it "UNITED ARAB EMIRATES"
|}

=== Issues with fraud ===
By August 2006 it became publicly known that the [[Finance:Philippine peso|Philippine one peso]] coin is the same size as one dirham.<ref>{{cite news | first=Sunita | last=Menon | title=Hey presto! A Peso's as good as a Dirham | url=http://gulfnews.com/news/gulf/uae/general/hey-presto-a-peso-s-as-good-as-a-dirham-1.38628 | publisher=gulfnews.com | date=2006-08-01 | access-date=2014-09-14 }}</ref> As 1 peso is only worth 8 fils, this has led to vending machine fraud in the UAE. [[Finance:Pakistani rupee#Coins|Pakistan's 5 rupee coin]], the [[Finance:Omani rial#Coins|Omani 50 Baisa coin]] and the [[Finance:Moroccan dirham#Coins|Moroccan 1 dirham]] are also the same sizes as the Emirati one dirham coin. Although 1mm thinner, one dirham coin has also been found in ten-cent coin rolls in Australia. A falcon watermark is present on all dirham notes to prevent fraud.

== Banknotes ==
On 20 May 1973, the UAE Currency Board introduced notes in denominations of 1, 5, 10, 50, and 100 dirhams; a Dhs&nbsp;1,000 note was issued on 3 January 1976.<ref>{{cite book | last1 = Linzmayer | first1 = Owen | title = The Banknote Book | chapter = United Arab Emirates | publisher = www.BanknoteNews.com | year = 2012 | location = San Francisco, CA | url = http://www.banknotebook.com}}</ref> A second series of note was introduced in 1982 which omitted the Dh&nbsp;1 and Dhs&nbsp;1,000 notes. Dhs&nbsp;500 notes were introduced in 1983, followed by Dhs&nbsp;200 in 1989. Dhs&nbsp;1,000 notes were reintroduced in 2000. Banknotes are currently available in denominations of Dhs&nbsp;5 (brown), Dhs&nbsp;10 (green), Dhs&nbsp;20 (light blue), Dhs&nbsp;50 (purple), Dhs&nbsp;100 (pink), Dhs&nbsp;200 (green/brown), Dhs&nbsp;500 (navy blue) and Dhs&nbsp;1,000 (greenish blue).

The obverse texts are written in [[Social:Arabic language|Arabic]] with numbers in [[Eastern Arabic numerals]]; the reverse texts are in [[Social:English language|English]] with numbers in [[Arabic numerals]]. The 200 dirham denomination is scarce as it was only produced in 1989; any circulating today comes from bank stocks. The 200 dirham denomination has since been reissued and is now in circulation since late May 2008 – it has been reissued in a different colour; Yellow/Brown to replace the older Green/Brown.<ref>url={{cite web|url=http://archive.gulfnews.com/articles/08/05/24/10215816.html |title=Gulfnews: New Dh200 note to be issued in the UAE |access-date=June 27, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20081207122715/http://archive.gulfnews.com/articles/08/05/24/10215816.html |archive-date=December 7, 2008 }}</ref>

On 22 March 2008, The Central Bank of the United Arab Emirates released a Dhs&nbsp;50 note. The security thread was a 3-mm wide, colour-shifting windowed security thread with demetalized UAE 50, and it bore the new coat of arms. On 7 December 2021, a redesigned polymer Dhs&nbsp;50 note was released to commemorate the golden jubilee of the country on 2 December 2021, making it the UAE's first polymer banknote.<ref>{{cite news |last1=Forster |first1=Sarah |title=UAE leaders attend launch of new Dh50 banknote |url=https://www.thenationalnews.com/uae/2021/12/07/uae-leaders-attend-launch-of-new-dh50-banknote/ |access-date=9 December 2021 |agency=The National News |publisher=The National News |date=7 December 2021|archive-date=9 December 2021|archive-url=https://web.archive.org/web/20211209003932/https://www.thenationalnews.com/uae/2021/12/07/uae-leaders-attend-launch-of-new-dh50-banknote/|url-status=live}}</ref> Additional new polymer banknotes of Dhs&nbsp;5 and Dhs&nbsp;10 were introduced on 21 April 2022,<ref>[https://centralbank.ae/sites/default/files/2022-04/CBUAE%20issues%20new%20five%20and%20ten%20dirham%20polymer%20banknotes-EN.pdf UAE Central Bank] {{dead link|date=November 2023}}</ref> with the Dhs&nbsp;1000 released in the first half of 2023,<ref>{{Cite web |author=Web Desk |title=UAE Central Bank issues new Dh1,000 banknote for National Day |url=https://www.khaleejtimes.com/currency-exchange/uae-central-bank-issues-new-dh1000-banknote-for-national-day |access-date=2022-12-03 |website=Khaleej Times |language=en}}</ref> and the Dhs&nbsp;500 note reportedly introduced on 30 November 2023.<ref>{{Cite web |date=2023-11-30 |title=United Arab Emirates new 500-dirham polymer note (B250a) reportedly introduced on 30.11.2023 – BanknoteNews |url=https://banknotenews.com/?p=41872 |access-date=2023-12-17 |language=en-US}}</ref>

{|class="wikitable" style="font-size: 90%"
|+ 2003 series
|-
!colspan="2"| Image !!rowspan="2"| Value !!rowspan="2"| Main Color !!rowspan="2"| Dimensions (mm) !!colspan="2"| Description
|-
! Obverse !! Reverse !! Obverse !! Reverse
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAE0026.htm]
| Dhs&nbsp;5
| Brown
| 143 × 60
| Sharjah Central Souq also known as Islamic Souq, the Blue Souq or the central market
| Imam Salem Al Mutawa Mosque, which was formerly known as Al Jamaa mosque in Sharjah
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAE0027.htm]
| Dhs&nbsp;10
| Green
| 147 × 62
| A [[Engineering:Khanjar|Khanjar]]
| A pilot farm
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAE0028.htm]
| Dhs&nbsp;20
| Blue
| 149 × 63
| The front face of the Dubai Creek Golf and Yacht Club
| Traditional trading [[Engineering:Dhow|dhow]] (called ''sama'a'')
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAE0029.htm]
| Dhs&nbsp;50
| Light Brown
| 151 × 64
| An [[Biology:Oryx|Oryx]]
| Al Jahili Fort, a pre-Islamic fort in Al Ain
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAE0030.htm]
| Dhs&nbsp;100
| Red 
| 155 × 66
| Al Fahidi Fort
| Dubai World Trade Centre building
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAE0031.htm]
| Dhs&nbsp;200
| Dark Yellow
| 157 × 67
| The Zayed Sports City Stadium and the Sharia court building
| The Central Bank of the UAE building in [[Place:Abu Dhabi|Abu Dhabi]]
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAE0032.htm]
| Dhs&nbsp;500
| Sky blue
| 159 × 68
| A Saker falcon
| The Jumeirah Mosque
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAE0033.htm]
| Dhs&nbsp;1,000
| Brown
| 163 × 70
| Qasr al-Hosn
| View of [[Place:Abu Dhabi|Abu Dhabi]] skyline
|}
{|class="wikitable" style="font-size: 90%"
|+ 2021-2023 series
|-
!colspan="2"| Image !!rowspan="2"| Value !!rowspan="2"| Main Color !!rowspan="2"| Dimensions (mm) !!colspan="2"| Description
|-
! Obverse !! Reverse !! Obverse !! Reverse
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAEW0036.htm]
| Dhs&nbsp;5
| Brown
| 143 × 60
| Ajman fort
| Dhayah Fort in Ras al Khaimah
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAEW0037.htm]
| Dhs&nbsp;10
| Green
| 147 × 62
| Sheikh Zayed Grand Mosque
| Khor Fakkan Amphitheatre
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAEW2021-0050comm.htm]
| Dhs&nbsp;50
| Navy Blue
| 151 x 64
| Sheikh Zayed Al Nahyan and the other founding fathers
| Sheikh Zayed signing a union document
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAEW0042.htm]
| Dhs&nbsp;500
| Light Blue
| 159 × 68
| Terra Sustainability Pavilion in Expo Dubai
| Museum of the Future in Dubai, Emirates Towers, Burj Khalifa
|-
| colspan="2" align="center" | [http://www.banknote.ws/COLLECTION/countries/ASI/UAE/UAEW0043.htm]
| Dhs&nbsp;1,000
| Brown
| 163 × 70
| Sheikh Zayed "Hope" probe
| Barakah nuclear power plant in Ruwais

|}

== Exchange rates ==
On January 28, 1978, the dirham was officially pegged to the [[Organization:International Monetary Fund|IMF]]'s [[Finance:Special drawing rights|special drawing rights]] (SDRs).<ref>[http://www.centralbank.ae/DynamicGrowthB.php Dynamic Growth of the UAE Monetary and Banking Sector, Central Bank of the UAE] {{webarchive |url=https://web.archive.org/web/20060512001844/http://www.centralbank.ae/DynamicGrowthB.php |date=May 12, 2006 }}</ref> In practice, it has been pegged to the {{wipe|United States dollar}} for most of the time.<ref>[http://users.erols.com/kurrency/asia.htm Tables of modern monetary history: Asia] {{webarchive |url=https://web.archive.org/web/20070219231722/http://users.erols.com/kurrency/asia.htm |date=February 19, 2007 }}</ref> Since November 1997, the dirham has been pegged to the US dollar at a rate of US$1 = Dhs&nbsp;3.6725,<ref>[http://centralbank.ae/en/pdf/StatBull/SBull-q3-2005.pdf Statistical Bulletin, Quarterly July – Sep. 2005, Central Bank of the UAE] {{Webarchive|url=https://web.archive.org/web/20110815120033/http://www.centralbank.ae/en/pdf/StatBull/SBull-q3-2005.pdf |date=2011-08-15 }} Vol. 25, No. 3</ref> which translates to approximately Dh&nbsp;1 = US$0.272294.

{{Exchange Rate|AED|SAR|BHD|INR|JPY|USD
note=Rates obtained from these websites may contradict with pegged rate mentioned above}}

== See also ==
* Cooperation Council for the Arab States of the Gulf
* Economy of the United Arab Emirates

== References ==
{{Reflist}}

== External links ==

* [https://web.archive.org/web/20060704165050/http://www.centralbank.ae/commemorativecoincollection/english/index.html United Arab Emirates Commemorative Coins]
* [http://www.oanda.com/convert/classic?user=dubaishortstay&lang=en UAE Dirham Currency Converter]


[[Category:Fixed exchange rate]]

{{Sourceattribution|United Arab Emirates dirham}}