About the United Arab Emirates Dirham (AED)
What Is the United Arab Emirates Dirham (AED)?
The United Arab Emirates Dirham (AED) is the official currency of the UAE, abbreviated as "AED" and locally referred to as "Dh" (singular) or "Dhs" (plural). Issued by the Central Bank of the UAE, it serves as the sole legal tender across all seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al-Quwain, Fujairah, and Ras Al Khaimah.
- Symbol: د.إ (derived from its Arabic name "درهم إماراتي").
- Subdivision: 1 AED = 100 fils.
- Pegged Currency: Fixed at ~3.67 AED to 1 USD since 1978, ensuring exchange rate stability.
The Central Bank manages the AED’s design, circulation, and monetary policies, bolstered by the UAE’s robust economy and foreign reserves.
History of the AED
The term "dirham" originates from the Greek drachma. Before 1966, the Gulf rupee (linked to the Indian rupee) was used. Post-1966, currencies like the Qatar-Dubai riyal and Bahraini dinar circulated until the AED was unified in 1973, replacing regional variants.
AED Banknotes and Coins
- Coins: Introduced in 1973 (1, 5, 10, 25, 50 fils; 1 dirham). Smaller denominations (1–10 fils) are rarely used, leading to rounded transactions.
- Banknotes: Range from 1 to 1,000 dirhams, featuring Arabic text/Eastern numerals (obverse) and English/Arabic numerals (reverse). New polymer notes commemorate national milestones.
Exchange Rates and Stability
The AED’s peg to the USD ensures minimal volatility, making it a reliable currency for trade and finance. The UAE’s diversified economy (oil, tourism, finance) and strong foreign reserves further reinforce the dirham’s stability.
👉 Track real-time USDT to AED rates
Tether USDt (USDT) to AED Conversion
Bitget’s crypto-to-fiat data shows USDT/AED as the most popular pair for Tether USDt conversions. Use our calculator below to estimate exchange values:
Example Conversion:
- 1 USDT = 3.67 AED (approximate peg-adjusted rate).
Why Convert USDT to AED?
- Stability: AED’s USD peg minimizes exchange risk.
- Liquidity: High trading volume ensures competitive rates.
- Utility: Ideal for UAE-based transactions, remittances, or trading.
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FAQs
Is AED a stable currency?
Yes, due to its USD peg and the UAE’s strong economic fundamentals.
How long has AED been pegged to USD?
Since the 1970s, fixed at ~3.67 AED per USD.
Are smaller AED coins (fils) still used?
Rarely—transactions often round to the nearest 25 fils.
Can I use USDT directly in the UAE?
While USDT isn’t legal tender, it can be converted to AED via exchanges like Bitget.
What affects USDT-to-AED rates?
Market demand, liquidity, and the USD peg’s stability.