1 United Arab Emirates Dirham to United Kingdom Pounds

Find the daily exchange rates for AED/GBP 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 United Kingdom Pound (GBP) as their official currency

The United Kingdom Pound (United Kingdom Pound) is used as the main currency in the following countries: South Georgia and the South Sandwich Islands, Guernsey, Isle of Man, Jersey, United Kingdom

About The United Arab Emirates Dirham (GBP)

The GBP - British Pound Sterling - is the official currency of the United Kingdom, which includes England, Scotland, Wales, and Northern Ireland. It is one of the oldest currencies still in use today, dating back over 1,200 years. The British Pound is symbolized by '£' and abbreviated as 'GBP,' which stands for 'Great British Pound.' The Pound is subdivided into 100 smaller units called 'pence.' Often referred to simply as 'Sterling,' the GBP is one of the world’s most widely traded currencies, reflecting the United Kingdom’s significant role in global finance and trade.

The origins of the British Pound date back to Anglo-Saxon England, where the term 'pound' referred to the weight of silver used in minting coins. The name 'Sterling' is thought to have originated from the Old Norman French word 'esterlin,' meaning 'little star,' which was stamped on early coins. Over the centuries, the British Pound has evolved, adapting through various forms and monetary systems, including the adoption of the gold standard in the 19th century, and eventually becoming a free-floating currency in the 1970s.

The Pound Sterling is managed by the Bank of England, the central bank of the United Kingdom, which was established in 1694. The Bank of England is responsible for issuing banknotes and regulating the currency’s supply to ensure economic stability. The bank also sets interest rates and controls monetary policy to manage inflation and support economic growth. The UK’s financial stability, combined with London’s status as a leading global financial center, makes the Pound an attractive currency for international investors and a major reserve currency alongside the US Dollar and the Euro.

The British Pound is issued in both coin and banknote forms. Coins are available in denominations of 1, 2, 5, 10, 20, and 50 pence, as well as 1 and 2 Pounds. Banknotes are issued in denominations of 5, 10, 20, and 50 Pounds. Each banknote features portraits of notable British figures, including Sir Winston Churchill, Jane Austen, and JMW Turner, as well as historical landmarks such as Westminster Abbey and the Tower of London. In recent years, the Bank of England has transitioned to polymer banknotes, which are more durable, environmentally friendly, and resistant to counterfeiting compared to traditional paper notes.

The British Pound is a free-floating currency, with its value determined by the foreign exchange market. The Pound’s value can be influenced by a variety of factors, including monetary policy decisions by the Bank of England, political developments, and economic indicators such as GDP growth, unemployment rates, and inflation. In recent years, significant political events like the Brexit referendum in 2016 have had a notable impact on the Pound’s value, reflecting market reactions to changes in the UK’s economic outlook and trade relationships.

The Pound Sterling is used throughout the United Kingdom and its territories, providing a stable medium of exchange for residents and businesses. It is also accepted in some British Overseas Territories and Crown Dependencies, such as Gibraltar, the Falkland Islands, and the Isle of Man, each of which issues its own version of the Pound. Tourists visiting the UK will find the Pound essential for all transactions, from exploring historic sites like Buckingham Palace and Edinburgh Castle to shopping in London’s bustling markets and enjoying the countryside of Wales and Northern Ireland.

As one of the world’s most established currencies, the British Pound remains a symbol of the UK’s economic heritage, stability, and influence. The UK’s robust financial sector, rich history, and status as a leading global economy contribute to the Pound’s enduring strength and significance. The GBP continues to serve as a vital part of the international financial system, and its role as both a reserve currency and a global trading currency underscores the UK’s ongoing importance in world finance and trade.

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