Over time, we’ve heard Nigerians asking, “Is the Emirate Dirham higher than the Nigerian Naira?” They are mostly those who are seeking greener pastures in the Arabian country.
Their curiosity is centred around the Dirham to Naira exchange rate when it’s ripe for them to send money back home to their loved ones.
If you are one of them, we understand your curiosity and in this post, we’ll let you know if the Emirate Dirham is high or low viz-a-viz the Naira.
But before that, it’s very important to note that Dubai isn’t a country, rather it’s one of the seven Emirates that make up the United Arab Emirates (UAE).
Quick facts about Dubai
Dubai is a city and emirate in the UAE. The city is popular more than other emirates because of its luxury shopping, ultramodern architecture and lively nightlife scene. In the city of Dubai is an 830m-tall tower skyscraper, Burj Khalifa.
The United Arab Emirates which became a federation in 1971 comprises the following emirates:
- Abu Dhabi
- Dubai,
- Sharjah,
- Ajman,
- Umm Al-Quwain,
- Fujairah
- Ras Al Khaimah (it joined the federation in 1972)
UAE borders Oman and Saudi Arabia and has maritime borders in the Persian Gulf with Qatar and Iran.
Abu Dhabi is the capital city, the largest and wealthiest of the seven emirates.
Official Currency in Dubai
The official currency of the United Arab Emirates is Dirham. It’s adopted by all the seven emirates. The dirham is subdivided into 100 fils.
So, Dubai currency also means the Emirate Dirham also known as the Emirati dirham, The currency is officially abbreviated “AED”, other unofficial abbreviations include “DH” or “Dhs.”
The UAE Dirham banknotes are in 9 different denominations.
For instance, 20 UAE Dirham banknotes were issued by the Central Bank of UAE in 1997 which is blue-coloured with a sparrowhawk bird.
Dirham value to Naira
The question of the Dirham value to the Nigerian naira lies in the exchange rate. That’s the value of 1Dirhma to the naira at the exchange market – official or black market rate.
The dirham is pegged to the US dollar since 1997, which means the exchange rate never changes, one US dollar is worth AED3.67, unlike Nigeria with volatile forex.
Dirham is higher than the Naira in the exchange market both at the official and parallel market.
The official rate of Dirham to Naira
On December 15, 2020, 1 AED to Naira was NGN111.85 at the official market, but at the time of updating this article (February 12, 2024), 1 AED = N401.49.
AED100,000 will buy N40,148,933.13 at the official market.
The black market rate of Dirham to Naira:
Surprisingly, the exchange rate is lower in the black market, where 1 AED goes for N450 or N500, depending on your location.
However, the AED isn’t bad against other major currencies, US dollar is still valuable than the Emirat Dirham
For instance
- 1USD is AED3.67
- 1Pound Sterling is AED4.94
- 1Euro=AED4.47
Final thought:
The AED is more valuable than the Naira. It’s higher than the Nigerian currency at the exchange market. Next time you’re sending some Dirhams back to your loved ones in Nigeria, this should give you an idea of what you are likely to get in Naira.
Featured Image:
- By Atikah Akhtar on Unsplash