Last Updated on February 2, 2021 by Ope Quadri
Over time, we’ve heard Nigerians asking, “Is the Emirate Dirham higher than the Nigerian Naira?” They are mostly those who are seeking greener pasture in the Arabian country.
Their curiosity is centred around 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 made up the United Arab Emirate (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 a 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 of the following emirates:
- Abu Dhabi
- Umm Al-Quwain,
- 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 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, this means the exchange rate never changes, one US dollar is worth AED3.67 unlike Nigeria with a volatile forex.
Dirham is higher than the Naira at the exchange market both at the official and parallel market.
The official rate of Dirham to Naira
1AED to Naira is N103.46
At the rate of N103.46/1AED, AED100, 000 will fetch you N10,346,000
The black market rate of Dirham to Naira:
Surprisingly, the exchange rate is lower at the black market, where 1AED goes for N100 or N90, depending on your location.
The reason for the low rate at the unofficial market is because AED isn’t as hot at the global market and in Nigeria as the US dollar or Euro or Pound Sterling.
However, the AED is doing well against other major currencies
- 1USD is AED3.67
- 1Pound Sterling is AED4.94
The AED is doing well against the Naira. It’s higher than the Nigerian currency at the exchange market.
Next time you’re sending some Dirhams back to your loved in Nigeria, this should give you an idea of what you are likely to get in Naira.