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Facts you need to know about UAE:
| Capital | Abu Dhabi |
|---|---|
| Dialing Code | +971 |
| Currency | Emirati Dirham (AED) |
| Official Language | Arabic |
Importance of United Arab Emirates Dirham
The United Arab Emirates (UAE) is one of the most influential economic powers on the world map. The importance of the UAE is as it is home to most of the economic power centres across the globe. Earlier, the mainstream revenue generation of the UAE was from oil but today The UAE is the global hub for finance, banking, IT services and Tourism. The United Arab Emirates officially calls its currency as ‘United Arab Emirates Dirham (AED)’, also referred to as ‘Emirati Dirham’. It is denoted by the symbol ‘AED’ or ‘DH’.
History of the United Arab Emirates Dirham
The ‘Emirati Dirham’ or the ‘United Aram Emirates Dirham’ came into existence from the year 1973. The AED was introduced by replacing the earlier official currency called the ‘Qatar Riyal’ and ‘Dubai Riyal’. At the time of the first introduction of the AED, it was pegged to Great Britain Pound at a fixed exchange rate of 1 AED = 0.1 GBP. However, the AED was re-pegged to the US Dollar in 1978, at a fixed exchange rate of 1 USD = 3.6725 AED. Since the AED is pegged to the US Dollar it provides stability to the currency.
The coin denominations and banknotes of the United Arab Emirates Dirham have changed however since the 2000s the Central Bank of UAE has issued currency notes in the denominations of 5, 10, 20, 50, 100, 200, 500, and 1000. While coin denominations of 1, 5, 10, 25, and 50 fils and 1 dirham are available for usage.
History of the Indian Rupee
The Indian currency Rupees has undergone a lot of changes since its inception. In India, the issuance of banknotes and coins is done by the Reserve Bank of India. The currency banknote denomination of the Indian INR is 5, 10, 20, 50, 100, 200, 500, 1000 and 2000 while the denominations in coins are 1, 2, 5, 10. In 2016, after the demonetisation new paper currency with additional security features was introduced by the Reserve Bank of India along with the introduction of new 500 and 1000 banknotes.
Factors that affect the exchange of the United Arab Emirates Dirham to INR
Like any currency, the exchange rate of the United Arab Emirates Dirham fluctuates so it is important to keep a close watch on the factors that affect the value of the currency. Some of the important factors that affect the exchange rate of the Dirham to INR are as under:
- 1. Economic Conditions in India have a direct impact on the exchange rate between AED and INR
- 2. Interest Rates in India affect the exchange rates as higher interest rates will attract foreign investment. Similarly, low-interest rates can decrease foreign investments affecting the exchange rate negatively.
- 3. The political atmosphere and stability within India are other important key factors to affect the exchange rate. Also, international events like war, conflicts, natural calamities etc. can affect the exchange rate of the currencies.
- 4. Oil Prices in the United Arab Emirates can affect the exchange rate as the rise in the oil prices will increase the value of AED and viz.
Convert the United Arab Emirates Dirham to INR Online as per today’s conversion rate
One of the simplest ways to understand the value of INR you hold in Dirham is to use the currency exchange calculator. Today’s currency conversion rate of AED to INR is 1 AED = 22.32 INR. Let us understand the currency conversion with the help of an example:
Mr. Aslam is working in Dubai in the banking sector. Every month he plans to send 10000 Dirhams to India to his family. So let us understand how much value 10000 Dirhams has in INR.
Today’s currency exchange rate of AED to INR is 1 AED = 22.32 INR. Therefore, 10000 Dirhams will be 22.32 * 10000 = 223233.29 INR. Thus, the value of 10000 AED in India is 2,23,233.29 INR.
Convert the United Arab Emirates Dirham to INR
For ease of calculations, you can easily find a currency converter on the internet. There, you need to feed the value and the resultant amount of the desired INR or AED shall be reflected in real-time.
Today the rate of AED to INR is 22.32 i.e., for 1 AED the INR value is 22.32
How are AED -INR Rates Determined?
As mentioned above the factors like Economic/ Political conditions, oil prices, Interest Rates etc. are a few of the factors that determine the exchange rates of both currencies. The exchange rates for both currencies are maintained by their respective central banks i.e., The Reserve Bank of India for INR while the Central Bank of UAE for AED. Both banks determine the currency exchange rates and provide an update until the next change.
The United Arab Emirate Dirham and INR Overview
The recent past trends have shown that the highest is 1 AED = 22.532 INR while the lowest is 1 AED = 22.28 INR. Thus, showing a volatility of 0.19% in the past 30 days. Thus, the United Arab Emirates Dirham is a strong currency as compared to Indian Rupee. However, with the growing economies of both the rates of both currencies fluctuate so it is always advised to check the exchange rates to get the best value for the money you hold.
