United Arab Emirates Dirham (AED)

United Arab Emirates Dirham (AED) is the official currency of the United Arab Emirates (UAE). It is denoted by the ISO 4217 code AED. The UAE is a country located in the Middle East, consisting of seven emirates or states, including Dubai and Abu Dhabi.

Here are some key details about the United Arab Emirates Dirham (AED):

1. Subunits: The dirham is divided into 100 fils. Fils are the smaller units of AED and are not commonly used in daily transactions. Prices are typically quoted in dirhams rather than fils.

2. Usage: AED is the legal tender and widely accepted currency in the UAE. It is used by both the local population and tourists for daily transactions, including shopping, dining, hotel stays, and other commercial activities.

3. Exchange Rate: The exchange rate of AED is determined by the Central Bank of the UAE and is usually pegged to the US Dollar (USD). The AED exchange rate can fluctuate and may be influenced by market factors.

4. Banknotes and Coins: AED is available in both banknotes and coins. Banknotes are commonly found in denominations of 5, 10, 20, 50, 100, 200, 500, and 1,000 dirhams. Coins are available in 1 dirham and 50 fils denominations.

5. Currency Controls: The UAE has currency controls in place, which means there may be certain regulations and restrictions on currency transactions and foreign exchange involving AED.

6. Foreign Exchange Trading: AED is also traded in international foreign exchange markets. Investors can trade AED against other currencies and engage in financial instruments based on AED in the forex markets.

The United Arab Emirates Dirham (AED) plays a significant role in the UAE’s economic and commercial activities. It is used in various sectors, including oil industry, tourism, finance, and more. Additionally, AED holds importance in the global foreign exchange markets, especially in relation to other currencies in the region.