Today’s Exchange Rate UAE

What is an Exchange Rate?

The exchange rate is the value of a country’s currency against the currency of another country or economic region. For example, how many Indian rupees does it take to buy one dirham? ( Exchange rate aed to inr)

What is a Currency Exchange Regime?

An exchange rate regime is a way a country manages its currency in the forex or foreign exchange market. The exchange rate regime is closely connected to the country’s monetary policy.

There are two basic types of exchange systems: pegged and flexible exchange.

UAE Exchange Rate Regime

The United Arab Emirates currency Dirham is pegged to the USD (United States Dollars) at a rate of 3.6725 to $1 since November 1997.

Why UAE Peg its currency to the USD?

Pegging is a way for the countries to ensure the value of their respective currencies remains relatively stable while participating in International trade.

Since the UAE’s economy was dependent on oil industries, officials found it beneficial to peg its currency to the US dollar. By pegging its currency to the US dollar, the UAE government can reduce the volatility of its exports.