UAE Dirham

Each Dirham is subdivided into 100 fils. The currency includes several coin and banknote denominations. Coins come in 1, 5, 10, 25, 50 fils, and 1 Dirham. Banknotes are available in 5, 10, 20, 50, 100, 200, 500, and 1000 Dirhams.

Banknotes have a unique and intricate design, reflecting the UAE's culture, history, and achievements. For instance, the obverse side shows the UAE's coat of arms, a falcon (a national symbol), and inscriptions in Arabic, while the reverse side features prominent landmarks, like the Central Bank's headquarters, and English inscriptions.

Experts often regard the UAE's monetary policy, particularly its fixed exchange rate regime, as a significant factor in the country's economic stability. By pegging the Dirham to the US dollar, the UAE provides a predictable environment for international businesses and investors. However, it also ties the UAE's monetary conditions to the Federal Reserve's monetary policy. During periods of US dollar strength, this can result in tighter monetary conditions in the UAE.

The Central Bank of the UAE has a robust set of regulations to oversee operations involving the Dirham. It ensures currency stability, sets rules on issuance and exchange, and provides guidelines for financial institutions to prevent money laundering and financial terrorism. The Bank also monitors foreign exchange operations to prevent speculative trading that could impact the Dirham's stability.