Get To Know More About The Currency Of Dubai

If you are visiting Dubai or recently have moved there you must know at least the basics of the currency used in Dubai. I like the way Dubai currency looks. I've got many one dirham coins saved as well as not less than one bill of every denomination. I find them exotic looking and the coins have a historic feel to them.



Find a one dirham silver coin and simply feel its edges. They would not be straight. Examine the emblems and writings and it appears like every coin is hand crafted. The print on the coin looks like it was done by hand.



Enough of sentimental talk. Dubai shares the same currency that is used in the remainder of the country (as you'd expect), the Arab Emirate Dirham or AED. It's known as Dirham for short and you'll see it abbreviated as either Dhs. or Dh.



The dirham has been long pegged (since 1980 I think) to the US Dollar at Dh. 3.65 per $1. It's divided into 100 fils (the equivalent of cents). The notes come in denominations of 5,10,20,50,100,200,500 and 1000 Dirhams. The coins come in 1,5,10,25 and 50 fils and 1 dirham.



It is extremely rare to get coins with a denomination below 25 fils and so they're not as commonly used. Actually it is common to not receive the correct change in markets if you are making use of cash to shop. Be careful.



My personal rule is to use credit cards whenever possible. If your credit card works in Dubai (most US issued cards do), use it. MasterCard, Visa and American Express are accepted in most places in Dubai.



Be careful about Discover though. For some reason this card is never accepted anywhere outside the US, at least in my experience. I have tried to use Discover both in India and Dubai and it didn’t work. It does work next door in Canada though lol.



Anyhow, you can convert your Dubai currency to any other foreign currencies freely. You can do the exchanges at banks and exchange houses which are everywhere in Dubai. Just head to any mall and you'll find one inside.



I'd recommend exchanging your currency at the airport. Unlike most other countries, the Dubai airport is truly a good place to cash in your dollars or anything else for Dirhams. You will usually find better exchange rates compared to other airports.



It’s usually smart to get Dh. 100 prior to leaving the airport for cabs, tips, etc. Speaking of tips, most hotels and restaurants would automatically add the tip change to your bill. I used to think this was smart on the waiter’s part.



However these tips actually don’t go to the poor waiter but rather to the restaurant owner! So I typically leave some extra cash on the table after paying my bill with my credit card so that the waiter or hotel maid would get their share of gratuity.



There are a ton of banks everywhere in Dubai. In fact there's a dedicated street for banks known as Bank Street. Guess what you will notice there? lol a bunch of banks lined up all together.



You can probably find your bank on that street as most multinational banks have locations throughout Dubai now. They are shut around noon time for a few hours and on Fridays which is the weekly religious holiday in Dubai.



And if you require cash when the bank is closed, you can hit the ATM machines that are everywhere in Dubai. For every bank there are most likely 54,562 ATM machines. That was an overstatement however they're everywhere that it feels like it's true!



You'll be able to notice ATM machines in shopping malls, hotels, inside banks and in the newer bus stands. I recommend you always carry some cash with you, especially if you wish to purchase in the local markets of Dubai (the souks). If you have got cash on hand, you'll likely get the best bargains as you negotiate within the marketplace.



Going back to Dubai currency, the International Monetary Fund's Special Drawing Right controls Dubai's currency. It's job is to manage the valuation of Dirham in the international market (though truly it's based on how the US dollar behaves in relation to other global currencies).



This brings up a fascinating story. When I was in Dubai in December of 2007, there was a lot of speculation that the Dirham was going to be revalued for the first time in 20 plus years.



This is because local investors complained their portfolios were hurting as a result of of the devaluation of the US Dollar. Because of the speculation, many exchange houses modified the standard Dh 3.65 per dollar conversion and many individuals lost money exchanging currency in that time.



Fortunately for me I was able to purchase Dirhams for cheap and found an exchange house where I sold them for more than what I paid for them! This is when I wished I had my entire bank account based in Dubai!

The Dubai City Information portal is filled with quality information about Dubai that comes from the authors' own experiences in Dubai. Learn about what to do in Dubai, the best hotels and restaurants in Dubai, Dubai Currency , where to sight see, how to get a job in Dubai and much more.Visit Dubai Information Site to learn more about Dubai.