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.
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 Funds 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.
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.