BANKING AND INSURANCE IN RAS AL KHAIMAH
LOCAL CURRENCY
The currency for the UAE is the dirham, denoted AED internationally and Dhs locally. The dirham was first put into circulation in 1973, shortly after the formation of the UAE. This national currency replaced other currencies particularly the Bahraini dinar, or Qatari and Dubai riyal, which were circulating since 1966. Before that period, all emirates used the Gulf rupee. Maria Theresa Dollars were also popular before World War II; they were known as thaler, and they were named after the Austrian Empress Maria Theresa. Thalers were valued currency due to the fact that they were made of silver, and the silver content of the coins was always the same. They were often used in the pearl trading deals as a mean of payment. The only drawback was that their value depended on the price of the silver.
The dirham notes are issued in denominations of 1000, 500, 200, 100, 50, 20, 10, and 5 and coins are in 1 dirham, 50 and 25 fils. 100 fils make 1 dirham. All banknotes are printed in English on one side and Arabic on the other.
Since 1997, the dirham has been pegged to the US dollar and as a result 1 US$ is equal to 3.67dhs, which translates to 1dhs = 0.28 US$. For additional information visit the UAE Central Bank website: www.centralbank.ae
OBTAINING MONEY
ATM’s – ATM machines are situated mostly at banks and in shopping centres. Your ATM card is probably the most convenient method of obtaining cash without additional transaction costs; however, it would be wise to confirm beforehand with your own bank whether your card can be used in the UAE. Check also whether there is a transaction fee for cash withdrawals from ATM machines from other banks. When you withdraw cash by using credit cards you will most likely be charged extra.
Cash – cash is still the most popular means of payment. Smaller shops, food stands, market vendors, taxi drivers, etc. accept only cash.
Credit Cards – the well know credit cards such as Visa, Master Card and American Express are accepted by larger shops, hotels and restaurants. Smaller retail shops prefer cash and might not accept credit cards, or will charge an additional 5% for processing your credit card payment.
Traveller's Cheques – traveller’s cheques are accepted by most banks and official exchange offices.
Money Exchange Offices – widely available, details described in the money exchange section.
