What Currency is Dirhams?

What currency is dirhams?

If you’ve come across the term dirhams while booking a holiday, investing abroad, or shopping online, you might be wondering what it refers to and where it’s used. This guide is written for travellers, international shoppers, expats, and business owners. It explains what “dirhams” are, which countries use them, how they work, and how to manage them effectively for travel or trade.

Understanding the dirham

The word dirham is used to describe the official currency in several countries, but most commonly refers to the United Arab Emirates Dirham (AED) and the Moroccan Dirham (MAD). While they share a name and similar linguistic roots, they are distinct currencies with different values, issuing authorities, and countries of use.

The name "dirham" comes from the ancient Greek "drachma" and has been used historically across the Arab world.

1. United Arab Emirates Dirham (AED)

• Country: United Arab Emirates (UAE)

• Currency code: AED

• Symbol: د.إ or often written as Dhs or AED

The UAE dirham is the official currency of the United Arab Emirates, used across cities such as Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah. It is pegged to the US Dollar at a fixed rate of AED 3.6725 = USD 1, which offers stability for trade and tourism.

Coins: 1, 5, 10, 25, and 50 fils, and 1 dirham
Banknotes: AED 5, 10, 20, 50, 100, 200, 500 and 1,000

AED is widely accepted in retail, hospitality, and government sectors, and is the only legal tender throughout the UAE.

2. Moroccan Dirham (MAD)

• Country: Morocco

• Currency code: MAD

• Symbol: د.م or MAD

The Moroccan dirham is the official currency of Morocco, used in cities like Marrakesh, Casablanca, Fes, and Rabat. It is a non-convertible currency, meaning it cannot be freely traded on international forex markets. You’ll need to exchange it inside Morocco.

Coins: 1, 2, 5, and 10 dirhams, plus 10, 20, and 50 centimes
Banknotes: MAD 20, 50, 100, and 200

The Moroccan dirham is managed by Bank Al-Maghrib (the central bank), and while some tourist zones may display prices in euros, only MAD is legal tender for payment.

How to know which dirham you’re dealing with

• If you see prices listed in AED, Dhs, or with Arabic text, it likely refers to the UAE Dirham.

• If you see MAD or references to Morocco, it's the Moroccan Dirham.

• Always check the context (location, travel documents, websites) to confirm the currency before making financial decisions or conversions.

Benefits and considerations

Advantages of AED:

• Pegged to the US Dollar for stability

• Widely accepted in tourism and international business

• Easy to obtain abroad

Considerations:

• Be cautious of confusing AED with other currencies called “dirhams”

• High-denomination notes may not be accepted in taxis or small shops

Advantages of MAD:

• Official currency across all of Morocco

• Accepted everywhere from markets to motorways

Considerations:

• Exchange must be done in-country

• It is illegal to take large amounts of MAD in or out of Morocco

Tips for managing dirhams while travelling or trading

• Always convert to the correct currency for your destination—AED and MAD are not interchangeable.

• Use local ATMs for better exchange rates when in-country, but check with your bank about fees.

• Avoid exchanging money at airports, where the rates are less competitive.

• Carry smaller denominations for taxis, souks, or tipping.

• Decline dynamic currency conversion when paying by card—choose to pay in local dirhams to get a fairer rate.

FAQs

Can I use UAE dirhams in Morocco or vice versa?
No. Despite sharing the name, AED and MAD are not accepted outside their respective countries.

Is it better to bring dirhams with me or exchange on arrival?
For the UAE, it’s easy to obtain AED abroad. For Morocco, it’s often better to exchange upon arrival due to the currency’s restricted status.

Are dirhams the same as dinars?
No. Dinars are used in countries like Jordan, Tunisia, and Algeria. The two are entirely separate currencies.

Are credit cards widely accepted in dirham-using countries?
Yes in the UAE, especially in cities. In Morocco, cards are accepted in hotels and major shops but cash is still widely used.

Real-life example

A traveller heading to Dubai brings £500 and exchanges it for approximately AED 2,300. They use cash for taxis, markets, and tips, and a travel credit card for hotels and restaurants. Later, they plan a trip to Marrakesh and learn that MAD is not available to buy in the UK. Instead, they bring euros and exchange them locally at a bank for MAD. In both cases, they avoid airport kiosks, choose to pay in the local currency, and manage to stretch their money further.