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CBUAE · Currency Hub

UAE Dirham (AED)

Pegged to USD at 3.6725 since 1997. The Gulf's most important remittance currency.

1 AED =
USD
Live mid-market rate
📅 Updated: 5 Sept 2026
🔒
USD peg rate
1 USD = 3.6725 AED
🌍
Expat population
89% of UAE residents
💸
UAE remittances
AED 160B+ sent annually
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UAE forex reserves
USD 200B+
🛢️
Oil dependency
Declining — diversifying
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UAE GDP (2024)
USD 500B+ (target: 1T)

🇦🇪 About the UAE Dirham (AED)

The UAE Dirham (AED) is one of the world's most stable currencies, pegged to the US Dollar at exactly 1 USD = 3.6725 AED since 1997. This fixed peg is backed by the UAE's enormous oil wealth and sovereign wealth funds (ADIA, Mubadala) totalling over USD 1 trillion in assets. The peg has never been broken or adjusted in nearly 30 years.

Because AED is pegged to USD, AED exchange rates against all other currencies are entirely determined by USD. AED/INR = USD/INR ÷ 3.6725. AED/PKR = USD/PKR ÷ 3.6725. This means if you understand USD/INR or USD/PKR direction, you automatically know AED/INR and AED/PKR direction.

The UAE is home to 3.5 million Indians (the largest expat community) and 1.6 million Pakistanis, making it the world's single largest source country for both India and Pakistan remittances. Combined, the UAE sends over USD 20 billion annually to South Asia — one of the world's largest bilateral flows.

The UAE is rapidly diversifying its economy beyond oil through initiatives like Dubai Expo legacy investments, Abu Dhabi tourism, FinTech (DIFC), and manufacturing. However, the AED/USD peg remains a cornerstone of UAE monetary policy, providing unmatched exchange rate stability for the expat-driven economy.

Issued By
Central Bank of the UAE (CBUAE)
Rate Policy
Fixed peg to USD at 3
Historical High
Pegged — no historical high/low vs USD (1997)
Historical Low
N/A (pegged currency) (1997)

💱 Convert AED To Other Currencies

Live mid-market rates — click any pair for the full converter with conversion table and analysis.

💱 Convert Other Currencies To AED

⚙️ What Drives the UAE Dirham?

Key economic factors that move the AED exchange rate — monitored by traders, investors and expats.

AED/USD Peg (Fixed 3.6725)
AED's primary "driver" is USD — AED moves with USD against all non-USD currencies.
USD Federal Reserve Policy
Fed rate changes automatically flow through to AED — CBUAE mirrors Fed decisions to maintain the peg.
UAE Oil Revenue / ADNOC
Higher oil → stronger UAE economy → higher remittance capacity, but AED/USD stays fixed.
Expat Remittance Volumes
AED 160B+ sent annually. High remittances create structural AED demand.
Dubai Real Estate / FDI
Foreign investment inflows support UAE economy and AED demand indirectly.
Saudi-UAE OPEC+ coordination
Both peg to USD — Gulf currencies move in tandem vs non-USD currencies.

📊 AED Exchange Rate Forecasts

📰 AED Currency Articles & Analysis

📊 Popular AED Forecasts

Most-read AED exchange rate outlooks — updated regularly

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🕒 Recently Updated — AED Pages

Converter pages with latest market data and analysis

✈️ Travel Tips — AED

In the UAE, AED is king. Credit cards are universally accepted in malls, hotels, and restaurants. For currency exchange, avoid airport bureaus — exchange rates in the Gold Souk (Deira) or malls like Dubai Mall are significantly better. Taxis accept AED cash; Uber/Careem accept card payments.

💸 Remittance Tips — AED

For AED remittances to India and Pakistan, UAE Exchange (Mashreq Neo), Al Fardan Exchange, and Wise offer the best rates. For in-person exchanges, exchange houses in Deira (Dubai) offer near-open-market rates. For digital transfers, Wise provides transparent pricing with 0.4-0.5% margins.

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AED — Frequently Asked Questions

Why is AED pegged to USD?
The UAE pegged AED to USD in 1997 to: (1) Provide price stability for oil revenues (denominated in USD); (2) Attract foreign investment through currency certainty; (3) Facilitate trade (oil is USD-priced); (4) Maintain credibility amid oil price volatility. The massive sovereign wealth funds back the peg. It has proven extremely durable.
Can the AED peg break?
The AED/USD peg is considered one of the world's most credible. UAE's sovereign wealth assets (~USD 1.5 trillion) vastly exceed any possible speculative attack. Saudi Arabia's SAR is also pegged to USD, reinforcing Gulf peg stability. The only realistic scenario for de-pegging would be if oil revenues collapsed to near zero for an extended period — effectively impossible.
What is the best currency to carry in Dubai?
UAE Dirham (AED) is the official currency and should be used for most purchases. Credit cards (Visa/Mastercard) are widely accepted. For foreign visitors, exchanging your home currency at Dubai Mall or Gold Souk exchange bureaus gives excellent rates. Airport exchanges are slightly worse. ATMs are widespread — use a no-fee card for withdrawals.
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