subject: Get To Know More About The Currency Of Dubai [print this page] 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 appearance of Dubai currency. I have several one dirham coins saved and at least one bill of every denomination. I find them exotic looking and the coins have a historic feel to them.
Find a 1 dirham silver coin and simply feel its edges. They wouldn't 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 rest of the country (as you would expect), the Arab Emirate Dirham or AED. It is known as Dirham for short and you will see it abbreviated as either Dhs. or Dh.
The dirham has long been pegged (since 1980 I think) to the US Dollar at Dh. 3.65 per $1. It is divided into one hundred 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's very rare to find coins with a denomination below twenty five fils and so they are not as commonly used. Actually it is common not to receive the correct change in markets if you are making use of cash to shop. Be cautious.
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 using Discover both in India and Dubai and it didn't work. It does work next door in Canada though lol.
Anyhow, you could convert your Dubai currency to any other foreign currencies liberally. You could do the exchanges at banks and exchange houses which are everywhere in Dubai. Just visit any mall and you'll notice one inside.
I would recommend exchanging your currency at the airport. Unlike most other countries, the Dubai airport is essentially a good place to cash in your dollars or anything else for Dirhams. You will typically find better exchange rates compared to other airports.
It's usually smart to get one hundred dirhams before leaving the airport for cabs, tips, etc. Speaking of tips, most hotels and restaurants can automatically add the tip change to your bill. I used to think this was smart on the waiter's part.
But these tips genuinely don't go to the poor waiter but rather to the owner of the restaurant! Thus I typically leave some extra cash on the table after paying my bill with my credit card so that the waiter or hotel maid can get their share of gratuity.
There are plenty of banks all over Dubai. Actually there's a dedicated street for banks known as Bank Street. Guess what you'll find there? lol plenty of banks lined up all together.
You can probably find your bank on that street as most multinational banks have locations all over Dubai now. They're shut around noon time for a few hours and on Fridays which is the weekly religious holiday in Dubai.
And if you need cash when the bank is shut, you'll be able to hit the ATM machines that are everywhere in Dubai. For every bank there are most likely 54,562 ATM machines. That was an exaggeration but they're everywhere that it feels like it is true!
You can notice ATM machines in shopping malls, hotels, inside banks and in the newer bus stands. I suggest always carrying some cash on you, especially if you like to purchase within the local markets of Dubai (the souks). If you've got cash readily available, you'll probably get the best bargains as you negotiate in the marketplace.
Going back to Dubai currency, the IMF's Special Drawing Right regulates the currency of Dubai. It's job is to manage the valuation of Dirham in the international market (though really it is based on how the US dollar behaves in relation to other global currencies).
This brings up an interesting 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 over twenty 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 changed the typical Dh 3.65 per dollar conversion and several individuals lost money exchanging currency in that time.
Fortunately for me I was able to purchase Dirhams for cheap and located 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!
