United Arab Emirates Dirham (AED)

Origin and History of United Arab Emirates Dirham (AED) 

The Gulf rupee, which was previously used in the area, is where the history of the Emirati dirham began. The Trucial States started using alternative currencies, such as the Bahraini dinar and Dubai riyal, in 1966 after India devalued the Gulf rupee. However, the United Arab Emirates Dirham (AED) was introduced by 1973. This new currency made it easier for all the employees to use one kind of money. The Greek word "drakhmé" is whence the term "dirham" originates. This demonstrates the lengthy history of trade, even under the Ottoman Empire. Additionally, the nation began using dirham notes and fils coins. Dirham gained strength in the UAE market as a result. The Wayback Machine allows you to view the evolution of the UAE's economy throughout time if you are interested in learning more about the past. Big moments are also available, such as commemorative coins created for the nation's significant holidays. All of this contributed to the United Emirates' current robust monetary system.

Important milestones in the history of the United Arab Emirates Dirham

1. Introduction of the Dirham - The United Arab Emirates dirham becomes the official currency on 19 May 1973, replacing the Qatar Riyal, which had been in circulation in all Emirates except Abu Dhabi since 1966.

1. Coin Minting - In the year of its introduction, various coin denominations were minted, including 1, 5, 10, 25, 50 fils, and 1 dirham. The 1, 5, and 10 fils coins were made of bronze, while the rest were composed of cupronickel.

1. Coin Size and Composition Changes - In 1995, the size of the 1, 5, and 10 fils coins, as well as the 1 dirham coin, were reduced. The new 1 dirham coin shared the same diameter as the previous 50 fils coin, and the new 50 fils coin was reduced in size and given a heptagonal shape.

1. Banknote Series - The first series of banknotes was issued in 1973, followed by a second series in 1982, which replaced the denominations of 1 and 1,000 dirham. In 1983, 500 dirham notes were introduced, followed by 200 dirham notes in 1989. The reintroduction of 1,000 dirham notes took place in 2000.

1. Pegging to International Monetary Fund (IMF) Special Drawing Rights - On 28 January 1978, the dirham was pegged to the IMF's special drawing rights, establishing a fixed exchange rate. In practice, the dirham is commonly tied to the US dollar.

 Economy 

1. The UAE is the Gulf Cooperation Council's second-ranked country 

1. Exports of natural gas and petroleum are significant to the nation's economy 

1. The service and industrial sectors, which together account for about half of the GDP, are the backbone of the UAE's economy 

1. Construction is a significant element of the UAE's economy, with approximately $400 billion in current and ongoing projects 

1. The World Trade Organization (WTO) and the Organization of the Petroleum Exporting Countries (OPEC) both include the United Arab Emirates 

1. Food, chemicals, machinery, and transportation equipment are examples of imports 

1. The UAE's economy is one of the world's fastest growing.