Euros or dollars in Dubai

[airman13]

Hi, I want to know what is better for exchange in Dubai, euro or dollar.

Thanks!!

[bear11]

Hi, the Dirham is currently pegged to the dollar at a fixed rate of 3.6731, in other words if the Dollar goes up, the Dirham goes up, and if the Dollar falls as it has been doing for some time, the Dirham falls also:

http://www.fxcentre.com/exchange_rates.asp

There has been much talk in the UAE about unpegging the Dirham from the dollar - it's still being rumoured but nothing has happened yet, so your guess is as good as mine.

The Dirham floats freely against the Euro, you can see recent examples:

http://www.exchange-rates.org/history/AED/EUR/G

Given the recent strength of the Euro and weakness of the Dollar, you would get far more Dirhams for your Euro, so I suppose that's the answer. What will happen in the future though is anybody's guess - if I knew, I'd be on a yacht in the Caribbean smoking a big cigar.

Incidentally, don't expect to be paid in Euro down there, it would be very unusual - the reason the Dirham is pegged to the Dollar is it's oil country, so most of the money there is Dollars they earn from the oil.

Hope this helps!

[Gulfstreamaviator]

This is the next stage in the Mighty Dollar / Euro / Dirham.

Several oil production states are considering only sales in Euros, so never say never.

But in general, $ is still king.

glf

[EGGW]

If you come from the EUrozone, change them, you will get FAR more dirhams. Dollar is pants.

EGGW