1 United Arab Emirates Dirham to Canadian Dollars

Find the daily exchange rates for AED/CAD and for all the top World currencies.

Countries That Use United Arab Emirates Dirham (AED) as their official currency

The United Arab Emirates Dirham (AED) is used as the main currency in the following countries: United Arab Emirates

Countries That Use Canadian Dollar (CAD) as their official currency

The Canadian Dollar (Canadian Dollar) is used as the main currency in the following countries: Canada

About The United Arab Emirates Dirham (CAD)

The CAD - Canadian Dollar - is the official currency of Canada, one of the largest countries in the world by area. The Canadian Dollar is symbolized by '$' or 'C$', and is often informally called the 'loonie' due to the depiction of a loon, a common bird in Canada, on the one-dollar coin. The CAD is subdivided into 100 smaller units called 'cents.' As the fifth most-held reserve currency globally, the Canadian Dollar is known for its stability and reliability, reflecting Canada’s well-developed economy and rich natural resources.

The Canadian Dollar was introduced in 1858, replacing the Canadian Pound, as the country moved towards adopting a decimal system that was similar to the United States Dollar. This transition was made to facilitate trade with the United States, which was becoming an increasingly important economic partner. Initially, the CAD was pegged to the British Pound and later to the US Dollar, but in 1970, Canada adopted a floating exchange rate. Since then, the value of the Canadian Dollar has been determined by market forces, reflecting the strength of the Canadian economy and its integration into global financial markets.

The Canadian economy is diverse and resource-rich, with significant contributions from sectors like energy, mining, manufacturing, agriculture, and services. As a result, the value of the CAD is often influenced by global commodity prices, particularly oil, natural gas, and metals, since Canada is one of the world's largest exporters of these resources. This commodity-linked nature of the CAD means that fluctuations in global demand for raw materials can significantly impact its value. Investors often view the Canadian Dollar as a 'commodity currency,' making it a popular choice during times of rising commodity prices.

The Bank of Canada, the country’s central bank, is responsible for issuing the Canadian Dollar and managing the country's monetary policy. The bank’s primary objective is to maintain low and stable inflation, which it accomplishes through interest rate adjustments and other monetary measures. The Canadian Dollar is issued in both coin and banknote forms. Coins are available in denominations of 5, 10, and 25 cents, as well as 1 and 2 dollars, often known as the 'loonie' and 'toonie,' respectively. Banknotes are issued in values of 5, 10, 20, 50, and 100 dollars. Canadian banknotes are made from polymer and feature advanced security features, as well as portraits of notable Canadian figures such as Sir Wilfrid Laurier, Canada's first French-speaking prime minister, and Viola Desmond, a civil rights activist.

The Canadian Dollar plays an essential role in both domestic and international trade. Canada’s proximity to the United States, combined with the North American Free Trade Agreement (NAFTA) and its successor, the United States-Mexico-Canada Agreement (USMCA), has made the CAD a critical currency in North American trade. Its value is closely monitored by businesses, investors, and governments, given Canada’s strong economic ties to the United States and its role as a major exporter of commodities like oil, timber, and wheat.

In everyday life, the Canadian Dollar is used across Canada, from bustling metropolitan cities like Toronto and Vancouver to more remote areas, ensuring seamless trade and commerce throughout the vast country. The iconic symbols depicted on coins and banknotes celebrate Canada’s heritage, natural beauty, and historical achievements, reflecting the values and diversity of the Canadian people.

The Canadian Dollar has proven to be a resilient and stable currency, even during periods of global economic uncertainty. Its connection to the commodities market, combined with Canada’s sound economic management and robust financial system, has contributed to its reputation as one of the most reliable currencies in the world. The CAD continues to represent Canada’s prosperity, resource wealth, and its active role in the global economy, making it a trusted store of value and a symbol of national pride.

About The United Arab Emirates Dirham (AED)

The AED - United Arab Emirates Dirham - is the official currency of the United Arab Emirates (UAE), a federation of seven emirates located in the Arabian Peninsula. Commonly represented by the symbol 'د.إ' or 'DH,' the Dirham is abbreviated as AED, which stands for 'Arab Emirates Dirham.' Each Dirham is subdivided into 100 smaller units called 'fils.' The currency holds great importance in the UAE’s economic development and symbolizes the country’s rapid transformation into a modern, diversified economy.

The Dirham was introduced on May 19, 1973, replacing the Bahraini Dinar and the Qatari and Dubai Riyal, which were previously used in various parts of the UAE. The introduction of the Dirham unified the country's currency system, providing consistency across all seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain. This change played a critical role in supporting the UAE's economic growth during the oil boom of the 1970s.

The name 'Dirham' is derived from the Greek word 'drachma,' which was historically used across the Arabian Peninsula due to ancient trade routes. The Dirham is often linked to the historical influence of trading with Greece, and it reflects the deep-rooted economic history of the region.

The UAE Dirham is pegged to the US Dollar at a rate of approximately 3.6725 AED to 1 USD, a peg that has been in place since 1997. This fixed exchange rate has provided the UAE with monetary stability, especially important given the country’s role as a global business hub. The peg to the US Dollar supports investor confidence and helps the UAE maintain stable financial markets, particularly given its heavy involvement in international trade, tourism, and finance.

In terms of currency circulation, the Dirham comes in both coin and banknote forms. Coins are issued in denominations of 1, 5, 10, 25, and 50 fils, as well as 1 Dirham, while banknotes range from 5 to 1000 Dirhams. The banknotes feature iconic landmarks and symbols of the UAE, such as the Sheikh Zayed Grand Mosque, the Burj Khalifa, and traditional cultural elements like the Dallah (Arabian coffee pot). These images reflect the UAE's blend of tradition and modernity.

The AED is widely used throughout the UAE, and its stability and reliability have contributed to the country’s rapid economic growth, making it a major financial center in the Middle East. The Dirham is also used by tourists, foreign workers, and investors, which has helped the currency maintain a significant presence beyond the UAE’s borders. The UAE’s commitment to economic diversification, along with its robust financial sector, has ensured that the Dirham remains a strong and stable currency in the global market.

As the UAE continues its ambitious development projects, the Dirham will play a crucial role in facilitating trade, tourism, and investment in the country, reflecting the UAE's dynamic and resilient economy.

United Arab Emirates Dirham (AED) Frequently Used Conversions