The UAE Dirham Peg
The UAE dirham (AED) has been pegged to the US dollar at 3.6725 AED per USD since 1997. That's why the AED–USD rate barely moves, and why the dirham rises and falls against other currencies — like the euro, pound or rupee — exactly as the US dollar does.
Other Gulf pegs: the Saudi riyal (3.75 per USD), Qatari riyal (3.64), Omani rial and Bahraini dinar are also tied to the dollar, so their rates against the dirham are very stable too.
How Exchange Rates Work
For currencies that float, rates change constantly with interest rates, inflation, trade flows and market sentiment. The board above shows indicative mid-market rates refreshed from a public rate feed when you're online. The rate you actually get from a bank or exchange house includes a margin on top.
Mid-Market Rate vs the Rate You Get
The midpoint between buy and sell prices on global markets — the "real" rate you see on this page and on news sites.
The rate a provider offers you, usually a little worse than mid-market. The difference — the margin — is a hidden cost on top of any fixed fee.
Sending Money From the UAE
Exchange houses
Branches across every emirate and apps for transfers, often with competitive rates for popular corridors.
Banks
Convenient from your account and app; compare both the fee and the exchange rate.
Digital apps
Licensed money-transfer apps often show the fee and rate upfront and deliver within minutes.
Cash pick-up & wallets
Many providers deliver to bank accounts, mobile wallets or cash pick-up points abroad.
Use licensed providers only. Banks and exchange houses in the UAE are licensed by the Central Bank. Informal or unlicensed transfer channels are illegal and offer no protection.
What You Need to Send Money
- Valid Emirates IDOr passport for visitors
- Recipient's full nameAs on their ID or bank account
- Bank account / IBAN or walletPlus bank name and branch
- Purpose of transferFamily support, savings, education…
How to Get a Better Rate
Compare the amount received. Fee + margin together decide what arrives — that's what the "Send money home" tool ranks.
Send larger, less often. Fixed fees hurt small transfers most.
Avoid airport counters. They usually have the widest margins for travel cash.
Pay in local currency abroad. When a card terminal offers to charge you in AED, choose the local currency instead to avoid dynamic currency conversion fees.
A Short History of the Dirham
1973The dirham is born
The UAE dirham was introduced, replacing the currencies previously used across the emirates and creating one national currency.
1997Pegged to the US dollar
The exchange rate was formally fixed at 3.6725 dirhams per US dollar, where it has stayed ever since — the foundation of the UAE's monetary stability.
2020sNew polymer notes
The Central Bank began issuing more durable polymer banknotes with advanced security features.
2025A new dirham symbol
The Central Bank unveiled an official symbol for the dirham, alongside its work on a Digital Dirham for the future.
UAE Notes & Coins
One dirham is divided into 100 fils. You'll handle these every day:
Rounding at the till: because small fils coins are rarely used, card and cash totals are often rounded. Paying by card or app avoids the question entirely.
Ways to Send Money, Compared
| Method | Speed | Typical cost | Best for |
|---|---|---|---|
| Exchange house (branch / app) | Minutes–1 day | Low fee, competitive rate | Regular family transfers |
| Bank transfer (SWIFT) | 1–3 days | Higher fee + margin | Large amounts, property, tuition |
| Licensed digital apps | Minutes | Low, shown upfront | Small and frequent transfers |
| Card abroad | Instant | ~2–3% foreign fee | Spending while travelling |
Travel money tips
Flying out of DXB or AUH? A little planning gets you a better rate than airport counters.
- Use a no-FX-fee cardSome UAE cards and digital banks waive foreign fees
- Carry a little local cashExchange in the city, not at the airport
- Pay in local currencyDecline dynamic currency conversion
- Tell your bank you're travellingAvoid blocked cards
Common Money-Transfer Mistakes
✓Do
- Compare the amount received, not the fee.
- Double-check names and IBANs before sending.
- Keep your receipts and transaction references.
- Use licensed providers regulated by the Central Bank.
✕Don't
- Use informal or unlicensed channels — they're illegal and unprotected.
- Send many tiny transfers where fixed fees eat your money.
- Share OTPs or app passwords with anyone.
- Trust "too good" rates from unknown websites or social media.
Before You Send: Checklist
What Foreign Amounts Cost in Dirhams
Handy amounts in each currency and their cost in AED at today's rates — useful when you're shopping online or planning a trip.
Typical foreign fee≈ 2–3%Photo: UnsplashUsing UAE cards abroad
Your debit or credit card works almost everywhere, but small fees add up on a long trip.
- Foreign transaction feeCharged on every overseas or foreign-currency purchase
- ATM withdrawalsYour bank and the foreign ATM may both charge
- Pay in local currencyAvoid dynamic currency conversion at the terminal
- Turn on travel alertsUse your bank app to avoid card blocks
Carrying Cash Across Borders
Travellers entering or leaving the UAE must declare cash and valuables worth more than AED 60,000 (or the equivalent in other currencies), including gold and precious stones. Declarations can be made online through the customs authority before you travel. Your destination country will have its own limits too.
Avoiding Currency & Transfer Scams
✓Stay safe
- Use licensed exchange houses and banks only.
- Verify payment requests by calling a known number.
- Check rates on two sources before a big exchange.
- Report suspicious messages to your bank.
✕Red flags
- "Guaranteed" better rates from strangers or social media.
- Urgent requests to send money to a new account.
- Fake bank calls asking for OTPs or card numbers.
- Street money changers outside official outlets.
Your Salary, WPS & Sending Money
Most private-sector salaries in the UAE are paid through the Wage Protection System (WPS) into a bank account or a payroll card. Many employees then send part of their salary home. Setting up a regular transfer on salary day — through your bank app or a licensed exchange house — makes budgeting easier and avoids last-minute rate surprises.
Multi-Currency Accounts & Wallets
Many UAE banks offer accounts in USD, EUR, GBP and more. Useful if you earn or spend regularly in another currency.
Some digital banks and apps let you hold and convert several currencies in one wallet, often with low fees for travel cards.
Compare options on our Bank Accounts page.
Currency Glossary
The midpoint between buy and sell prices on global markets.
The difference between the mid-market rate and the rate you're offered.
A fixed exchange rate between two currencies, like AED to USD.
The global network banks use to send international transfers.
International Bank Account Number used for transfers.
Dynamic currency conversion — paying in your home currency abroad, usually costly.
Money sent by someone working abroad to family at home.
A licensed money exchange and transfer business.
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