The Dirham, (AED) is the currency of the United Arab Emirates. 1 Dirham = 100 fils. The dirham is pegged to US Dollar which means the rate is always kept at 3.6725. Dubai has the peg in place so it can benefit from America’s financial stability. This also makes the peg convenient for oil transactions which are all denoted in US dollars.
The United Arab Emirates has the fastest-growing economy in the world, with most of their exports coming from the natural gas and the petroleum industry. Their imports are mostly machinery, manufactured goods and transport equipment. The service sector is also an important source of income in the economy.
When you look at the dirham in relation to other currencies, you see parallels with the dollar due to them being pegged together. Therefore we know if GBPUSD is trading higher, GBPAED will also be trading higher.
Anyone who is looking at moving to Dubai, will have a requirement to exchange their local currency into AED. for this purpose they should seriously consider speaking to an independent currency broker. Even if the requirement is simply to repatriate salary, or cover costs of living abroad an independent broker should always be more competitive than the high street banks.
Also, by fixing a favourable rate in a volatile market, it is possible to lock in the final cost and avoid any risk in the event that the foreign currency starts to appreciate in value.
World of Expats is now working together with Cornhill FX, a bespoke London based brokerage, to help individuals with this process.
To contact a Currency Consultant, please call 0207 710 9614 or email the World of Expats contact Jamie Hughes on email@example.com