The Traveling Taylors

We made a few mistakes the first time we handled currency in the UAE—ATM fees, awkward coin mix-ups, and confusing banknotes. But once we figured out how to manage the UAE Dirham smartly, everything from street markets to desert excursions became easier. Here’s your practical guide to converting and using AED while traveling.

Understand the Exchange Rate

• The UAE Dirham (AED) is pegged to the US Dollar: 1 USD ≈ 3.6725 AED.
• This fixed rate has been in place since 1997, offering currency stability and predictability.
• Tip: Avoid apps that charge dynamic conversion fees—stick with local currency at checkout.

Where to Get UAE Dirhams

• Best Option: Local ATMs in the UAE for real-time bank rates.
• Good Alternatives: Currency exchanges in malls or major hotels.
• Avoid: Airport exchange counters and kiosks in tourist hotspots—they often have the worst rates.

Using AED: Cash vs Card

• Cash is ideal for souks, taxis, tips, and small shops. Keep change in 5s, 10s, and 20s.
• Cards are widely accepted in malls, restaurants, and hotels.
• Contactless payments like Apple Pay and Google Pay work well in cities like Dubai and Abu Dhabi.

Money-Saving Tips

• Withdraw more at once to reduce ATM fees.
• Use no-foreign-transaction-fee credit cards.
• Always choose to be charged in AED, not your home currency, to avoid inflated conversion rates.

Quick Guide to Denominations

• Coins: 25 fils, 50 fils, 1 dirham (useful for metro, vending machines, and parking)
• Notes: 5, 10, 20, 50, 100, 200, 500, 1,000 AED
• New polymer notes are in circulation and feel different—don’t worry, they’re valid!

Can You Use Other Currencies in the UAE?

• Technically no—UAE Dirham is the only legal tender.
• However, USD, GBP, and EUR are accepted in some hotel chains and exchange shops.
• You’ll always get a better rate using AED directly.

Final Thoughts on Managing Money in the UAE

Traveling with UAE Dirhams is easy if you plan ahead. Stick to local ATMs, carry small notes for everyday use, and avoid dynamic currency conversion traps.