In the modern economic world, national currencies are among the most important tools that reflect the strength and stability of any country's economy. Among these currencies, the 'dirham' stands out as a currency with deep historical roots in the Arab world and a promising future in Gulf and global financial markets. The dirham represents more than just a medium for trade; it is a mirror of economic policies and monetary stability in the countries that adopt it, primarily the United Arab Emirates and Morocco. The dirham plays a pivotal role in shaping financial and trade policies, directly influencing the decisions of investors, importers, and exporters alike. Over the past few decades, the dirham has become a symbol of trust in the Gulf economy, especially with its peg to the US dollar and its relative stability compared to some other regional currencies. The dirham has also proven its position in international transactions, as major companies and financial institutions use it in their daily accounts, alongside its vital role in intra-regional trade within the Gulf and North Africa. In this detailed article, we will review the history of the dirham and its evolution, analyze the factors contributing to its stability, and discuss its significance in Saudi financial markets and its role in investment, focusing on its relationship with exchange rates, monetary policies, and its impact on various economic sectors. We will also provide comparisons between the dirham and other regional currencies and explain how followers can understand the dynamics of the dirham amid global and local economic changes. This reading comes at a time when the importance of regional currencies is increasing in light of economic transformations and the growing trade relations between Gulf countries and global markets, making an understanding of the dirham essential for anyone interested in financial and economic affairs.
History of the Dirham: From Islamic Currency to Modern Era
The origin of the dirham dates back to the early Islamic eras, where it was used as a basic monetary unit in the Umayyad Caliphate since the 7th century AD. The name 'dirham' is derived from the Greek word 'drachma,' which referred to a unit of weight and silver in ancient empires. The Islamic state adopted the silver dirham as an official currency parallel to the gold dinar, and the dirham was used in international trade between the East and West, facilitating trade exchanges along the Silk Road and the Mediterranean Sea. Throughout the Middle Ages, the dirham maintained its status, being minted in many Islamic cities, and local versions of the dirham emerged in various regions, including Andalusia and the Maghreb. With the evolution of modern monetary systems, some Arab countries revived the name dirham in their national currencies, such as the United Arab Emirates and Morocco. In the UAE, the Emirati dirham was issued in 1973 to replace the Bahraini dinar and the Qatari riyal, as part of establishing a modern federal state in need of a unified national currency that reflects sovereignty and financial independence. In Morocco, the Moroccan dirham was adopted in 1960 after independence from French colonial rule, becoming a symbol of national economic identity. This rich history of the dirham reflects its deep connection to Islamic and Arab heritage, giving it a cultural dimension that transcends its role as a mere financial tool. The continued use of the name dirham today highlights the importance of historical roots in shaping contemporary monetary policies. Understanding this historical legacy helps explain the trust the dirham enjoys in local and international markets, placing it in a broader context of the economic and political developments that the Islamic world has witnessed throughout the ages.
Emirati Dirham: Its Characteristics, Monetary Policies, and Stability
The Emirati dirham (AED) is the official currency of the United Arab Emirates and is considered one of the most stable currencies in the Gulf region. The first Emirati currency was issued in 1973, following the establishment of the federation, and its value was pegged to the US dollar at a fixed exchange rate of approximately 3.6725 dirhams per dollar. This fixed peg has contributed to the stability of the dirham against foreign currencies and has largely shielded the Emirati economy from global market fluctuations. The Central Bank of the UAE is responsible for issuing the dirham and managing monetary policies, including monitoring the money supply, adjusting interest rates, and achieving economic growth objectives while controlling inflation levels. The central bank is committed to maintaining strong foreign currency reserves, particularly in US dollars, to support the stability of the dirham's exchange rate and ensure confidence among local and foreign investors. Practically, the stability of the dirham facilitates import and export operations, making the UAE an attractive destination for foreign investments, as it reduces the risks of currency fluctuations. It also contributes to the stability of local prices for goods and services, reducing costs for companies operating in the Emirati market. However, the dirham's peg to the dollar is a double-edged sword; it deprives national monetary policies of some flexibility in responding to economic shocks and makes the dirham susceptible to the effects of US fiscal policies. On the other hand, the stability of the dirham has enabled the UAE government to implement massive projects and attract capital from around the world, especially in the real estate, energy, and tourism sectors. The dirham stands out as a reliable currency in daily and commercial transactions, not only within the UAE but also in regional deals with neighboring countries, where the dirham is sometimes accepted as a trading currency in the Gulf, reflecting its strength and regional status.
Moroccan Dirham: Composition and Economic Role in North Africa
The Moroccan dirham (MAD) is the national currency of the Kingdom of Morocco, officially adopted in 1960 following independence from France, replacing the Moroccan franc. The Bank of Morocco issues the dirham and is responsible for monitoring monetary policy and ensuring currency stability. The Moroccan dirham is divided into 100 centimes, and various denominations are available, including notes and coins, facilitating daily use throughout the country. Morocco operates a semi-flexible exchange system, where the dirham moves within a defined range against a basket of major currencies, including the euro and the US dollar. This system grants the Bank of Morocco flexibility in facing global market fluctuations and reduces the risks of external shocks on the local economy. The Moroccan dirham plays a pivotal role in the national economy, as it is used to settle all commercial and service transactions and forms the basis of government financial policies. It is also an indicator of Moroccan economic performance, as its movements affect inflation, import and export costs, and the value of foreign reserves. In recent years, the stability of the dirham has contributed to attracting foreign direct investments, especially in the automotive, agriculture, tourism, and manufacturing sectors. Additionally, it has enhanced Morocco's ability to finance its development projects within cooperation programs with the European Union and Gulf countries. Regionally, the dirham plays an important role in intra-trade with North and West African countries and is sometimes used in informal transactions in neighboring countries. However, the dirham faces challenges related to trade deficits and the decline of some export sectors, which periodically exert pressure on the exchange rate and foreign currency reserves. Nevertheless, the cautious policy of the Bank of Morocco and the trend toward diversifying national income sources have helped maintain the stability of the dirham and make it one of the most trusted currencies in regional and international markets.
The Relationship Between the Dirham and the US Dollar: Economic and Trade Dimensions
The relationship between the dirham and the US dollar is one of the fundamental pillars of monetary policy in countries that adopt the dirham as their national currency, particularly the United Arab Emirates. Since 1980, the Emirati dirham has been pegged to the US dollar at a fixed exchange rate, providing monetary stability and pricing most imports and exports based on the dollar. This peg facilitates foreign trade and investment operations and reduces exchange rate fluctuations that could negatively impact the local economy. However, the dirham's connection to the dollar carries multiple dimensions. On one hand, it enhances confidence among local and foreign investors, making the business environment in the UAE more attractive, as international transaction costs can be predicted easily. It also ensures the stability of local prices for essential goods linked to the dollar and reduces the risks of imported inflation. On the other hand, the central bank loses some independent monetary policy tools, as local interest rates are influenced by movements from the US Federal Reserve. When the Fed raises interest rates, the UAE often has to take similar actions to maintain the stability of the peg, even if local economic conditions do not require it. This can affect domestic growth, especially during global recessions or financial crises. It is noteworthy that the stability of the dirham linked to the dollar has helped the UAE navigate many global financial crises, such as the 2008 financial crisis and the COVID-19 pandemic in 2020, as the currency maintained its value and did not face speculative attacks or capital flight. Nevertheless, the peg of the dirham to the dollar remains a topic of discussion among economists, who believe that future shifts in the global economy may necessitate a reconsideration of monetary policy flexibility to achieve the long-term interests of the national economy.
The Role of the Dirham in Regional and International Trade
The dirham plays a prominent role in facilitating regional and international trade, especially in the Gulf and North Africa, where it is adopted as the official currency in the UAE and Morocco and is accepted in some informal transactions in neighboring countries. In the UAE, the dirham is used to settle most trade transactions with regional partners, particularly in services, tourism, and real estate. The stability of the dirham against the dollar makes the UAE an attractive commercial and financial hub, which is reflected in the massive inflows of foreign direct investment and the volume of trade exchanges with Europe, Asia, and North America. Many multinational companies rely on the dirham in their contracts within the UAE, especially in the oil, gas, construction, and banking sectors. In Morocco, the dirham is used in export and import transactions with the European Union and African countries, serving as an important indicator of the attractiveness of the Moroccan economy to foreign investors. The role of the dirham is evident through the volume of foreign reserves held by the Bank of Morocco, which aims to support currency stability and facilitate international trade operations. On the other hand, the stability of the dirham has helped enhance economic integration among Gulf countries, as it is sometimes accepted in transactions between citizens and companies, especially in border areas and ports. It has also contributed to reducing the risks of exchange rate fluctuations faced by companies operating in regional markets, making the UAE and Morocco key gateways for trade between Europe, Asia, and Africa. Globally, the dirham benefits from a wide network of economic relations, as it is used in pricing some goods and services and is accepted in some global banks as a convertible currency when dealing with Gulf and Maghreb companies. This growing role of the dirham in international trade enhances its value and status in the global financial system, making it a reliable currency for both investors and companies.
Central Bank Policies and Their Role in Dirham Stability
Central banks play a crucial role in maintaining the stability of the dirham and ensuring its purchasing power. In the UAE, the Central Bank of the UAE is responsible for managing monetary policy, including issuing the dirham, monitoring the money supply, and adjusting interest rates. The central bank adopts a strategy of pegging the dirham to the US dollar and maintains substantial foreign currency reserves to support this peg. It also intervenes in the foreign exchange market when necessary to prevent speculation or sharp fluctuations. The Bank of Morocco follows a semi-flexible exchange policy, where the dirham moves within a defined range against a basket of major currencies. This policy grants the central bank flexibility in facing external pressures and allows it to intervene to adjust the exchange rate when necessary. The central bank conducts open market operations, manages foreign reserves, and monitors the banking sector to achieve a balance between economic growth and price stability. Through these policies, the central bank can address economic challenges such as inflation, trade deficits, or capital outflows. For example, during periods of rising oil prices or increased foreign investments, the central bank withdraws excess liquidity to curb inflation. In the event of declining exports or increased pressures on the currency, it resorts to using foreign reserves or adjusting interest rates to support the dirham. Additionally, central banks enhance transparency by publishing periodic reports on monetary conditions and providing data on reserve levels, inflation rates, and economic forecasts. This transparency helps build confidence among local and foreign investors and supports the dirham's status as a stable currency. Overall, central bank policies are one of the main pillars of dirham stability, contributing to protecting the national economy from global fluctuations and supporting sustainable long-term growth.
The Dirham in the Saudi Financial Market: Impact on Investment and Trade
Although the dirham is not an official currency in the Saudi financial market, it has an indirect impact on investment and trade in the Kingdom. This is due to the strong economic ties between Saudi Arabia and the United Arab Emirates, where the UAE is one of the largest trading partners of the Kingdom, and the dirham is used to settle many trade transactions, especially in the fields of import, export, and logistics services. The stability of the dirham against the dollar facilitates financial transfers between the two countries and reduces the risks of exchange rate fluctuations for Saudi companies operating in the UAE or dealing with Emirati companies. In the investment sector, the stability of the dirham is seen as a positive factor that enhances the attractiveness of the Emirati market for Saudi investors, allowing them to enter and exit investments easily without worrying about currency fluctuations. This encourages joint ventures and increases investment flows between the two countries, particularly in real estate, tourism, energy, and financial services sectors. On the other hand, the dirham's exchange rate affects the cost of products and services imported from the UAE to Saudi Arabia, especially given the interconnectedness of regional supply chains. When the dirham is stable, it makes it easier for Saudi companies to plan financially and manage risks associated with cash transfers. Additionally, some large Saudi companies list their operations or branches in the UAE and manage part of their financial transactions in dirhams. Conversely, Emirati companies benefit from the stability of the dirham in their dealings with the Saudi market, as they can price their products and services with greater confidence. The banking and financial sector is one of the most benefited sectors from this stability, as it facilitates transfers, financing, and asset management across borders. Overall, the dirham represents a stabilizing factor and support for trade and investment exchanges between Saudi Arabia and the UAE, enhancing economic integration in the Gulf region.
Comparing the Dirham with Other Gulf Currencies: Strengths and Challenges
The Emirati dirham stands out among Gulf currencies as one of the most stable and strong, attributed to several key factors. First, the dirham is pegged to the US dollar at a fixed exchange rate, granting it significant stability against global market fluctuations, a characteristic shared by most Gulf currencies such as the Saudi riyal and the Bahraini dinar. However, the dirham is distinguished by the substantial foreign reserves held by the Central Bank of the UAE, which enhances its ability to defend the exchange rate during crises. Second, the UAE benefits from a relatively diversified economy compared to some other Gulf countries, as its economy is not solely reliant on oil and gas but includes sectors such as tourism, real estate, financial services, and aviation, which mitigates the impact of oil price fluctuations on the currency. In contrast, some Gulf currencies face challenges arising from a heavy reliance on oil revenues, making them more susceptible to external shocks. On the other hand, the flexible exchange rate system in some countries like Kuwait provides them with greater flexibility in facing market fluctuations, but it makes their currency more vulnerable to larger exchange rate movements. The Moroccan dirham, on the other hand, differs from Gulf currencies in terms of its semi-flexible exchange system and its approach to a basket of currencies instead of a fixed peg to the dollar, giving it some monetary independence. The biggest challenge facing the dirham, like other Gulf currencies, is the limited monetary policy tools due to the strong peg to the dollar. When US interest rates change, Gulf central banks are forced to follow the same policies, even if they do not align with local economic conditions. Overall, the Emirati dirham is a model of monetary stability in the Gulf, but the continuation of this stability depends on the UAE's ability to diversify its income sources, maintain strong reserves, and adapt to changes in the global economy.
Dirham Exchange Rate: Influencing Factors and Economic Impacts
The exchange rate of the dirham is determined by a set of local and global economic factors. In the case of the Emirati dirham, it maintains a fixed exchange rate against the US dollar, creating a stable environment for investors and businesses. The main factors influencing the exchange rate include foreign reserves, inflation rates, oil prices, foreign investment flows, and global monetary policies. When foreign reserves are high, the central bank has the ability to intervene to protect the exchange rate from speculation or external pressures. In Morocco, the dirham moves within a defined range against a basket of currencies and is directly influenced by the performance of the national economy, export and import volumes, and trade balance deficits. Rising oil prices—an important factor in the UAE—strengthen the dirham's power by increasing foreign currency inflows, while declining oil prices may pressure reserves and the exchange rate. Inflation also plays a significant role, as rising local prices without a corresponding increase in productivity or capital inflows may exert pressure on the dirham. On the other hand, monetary policies in the US and Europe indirectly affect the dirham's exchange rate through interest rate movements and changes in global liquidity. In times of financial crises or global economic slowdowns, the currency may face pressures that prompt the central bank to intervene. In recent years, both the Emirati and Moroccan dirhams have maintained relative stability in exchange rates, thanks to cautious policies and foreign reserve management. This stability has contributed to attracting foreign investments and alleviating the risks of price fluctuations for businesses and consumers. Overall, the dirham's exchange rate is an important indicator of the health of the local economy and represents one of the main tools for central banks to achieve financial and monetary stability.
The Impact of the Dirham on the Real Estate and Tourism Sectors in the Gulf and Morocco
The stability of the dirham plays a key role in supporting the growth of the real estate and tourism sectors in both the UAE and Morocco. In the UAE, the stability of the dirham's exchange rate against the dollar has increased foreign investors' confidence in the real estate market, allowing them to buy and sell properties without worrying about currency fluctuations, attracting massive capital from Europe, Asia, and Russia in particular. Additionally, currency stability has enabled real estate development companies to plan long-term and execute large projects such as the Burj Khalifa, Palm Jumeirah, and smart city projects without significant cost risks. On the other hand, the stability of the dirham has made the UAE a preferred tourist destination, as tourists can easily plan their expenses, and hotels and tourism companies benefit from clear and stable pricing for services. In Morocco, the stability of the dirham has enhanced the tourism sector's ability to attract visitors from Europe and Gulf countries, as they can benefit from stable exchange rates and predictable living costs. Currency stability has also facilitated investment in hotels and tourism infrastructure, making the kingdom one of the top tourist destinations in Africa. In the Moroccan real estate sector, the stability of the dirham has allowed local and foreign investors to engage in long-term deals without worrying about currency fluctuations. It has also helped stabilize property prices and attract foreign funding projects for housing and urban development. Ultimately, the stability of the dirham is a driving factor for growth in both the real estate and tourism sectors, as it reduces financial risks, enhances investor and consumer confidence, and supports long-term economic development plans.
The Dirham and Financial Transfers: The Role of Currency in Supporting the National Economy
Financial transfers play an important role in supporting national economies, especially in countries that rely on capital inflows from abroad. In the UAE, the dirham is the primary tool for transferring money to and from the country, whether by expatriate workers or foreign investors. Statistics indicate that the UAE is one of the largest countries exporting financial transfers in the world, with annual transfers reaching tens of billions of dollars, and the dirham is used to settle most of these operations. The stability of the dirham facilitates transfer operations and reduces exchange costs and risks associated with currency fluctuations, making the UAE a preferred destination for foreign labor and enhancing families' ability to send money to their home countries. In Morocco, financial transfers from expatriates play a vital role in supporting the national economy, representing a significant portion of national income and contributing to improving the living standards of beneficiary families. The dirham is used to settle these transfers, and the central bank benefits from the inflow of foreign currency to support reserves and stabilize the exchange rate. Additionally, transfers provide an important source of liquidity in the banking sector and support real estate and consumer financing in local markets. On a macro level, transfers contribute to enhancing economic growth, financing small and medium-sized enterprises, and stimulating domestic demand. They also help reduce the trade balance deficit and increase the country's ability to face economic crises. Overall, the dirham is a strategic tool in managing financial transfers and supports the stability of the national economy by enhancing liquidity, stimulating investment and consumption, and reducing risks associated with cross-border capital flows.
The Dirham and the Digital Economy: Challenges and Opportunities in the Age of Financial Technology
In recent years, there has been a notable development in the role of the dirham within the digital economy, with the expansion of financial technology (FinTech) in the UAE and Morocco. In the UAE, the government has launched several initiatives to support digital payments and transition government and private services to electronic systems, enhancing the use of the dirham in banking applications, digital wallets, and online payment services. Local and international financial technology companies are offering innovative solutions for managing money, transfers, and investments using the dirham, facilitating financial operations for both consumers and businesses. The dirham faces challenges in this area, primarily the need to enhance data security, combat cybercrime, and ensure compliance with international digital payment standards. On the other hand, these transformations have provided significant growth opportunities, as they have increased the efficiency of the financial system, reduced operational costs, and enhanced financial inclusion by reaching broader segments of society. In Morocco, the financial sector is gradually transforming towards digitization, with the spread of digital banks, electronic wallets, and mobile payment services. The dirham is used to settle these operations, accelerating the pace of digital transformation in the Moroccan economy. Monetary authorities are working on establishing regulations and frameworks to ensure the safety of digital operations, protect consumer rights, and promote innovation in the financial sector. Overall, the dirham is an essential part of the future of the digital economy in the region, providing a stable foundation for electronic payments and supporting the transition to a less cash-dependent economy that is more efficient and flexible in facing global technological changes.
Future Risks and Challenges for the Dirham Amid Global Economic Changes
Despite the current stability of the dirham, it faces a range of future risks and challenges related to global and local economic changes. The first of these challenges is the heavy reliance on pegging the dirham to the US dollar, which reduces monetary policy flexibility and makes the local economy vulnerable to global market fluctuations and the policies of the US Federal Reserve. In the event of significant changes in the dollar's value or US interest rate policies, the central bank may have to take actions that do not align with local economic needs. Other challenges include fluctuations in global oil prices, as the UAE—like most Gulf countries—heavily relies on oil revenues, and any sharp decline in prices could impact foreign reserves and exert pressure on the exchange rate. Additionally, Morocco faces challenges related to trade deficits and slowing growth in some export sectors, which could affect the future stability of the dirham. Furthermore, rising geopolitical tensions, changes in global trade policies, and increasing economic wars pose additional risks that may impact investment flows and investor confidence in the currency. The rapid shift towards the digital economy also presents challenges related to information security, combating money laundering, and ensuring compliance with international standards to protect the financial system. In facing these challenges, the sustainability of the dirham depends on the ability of central banks to manage liquidity, diversify national income sources, and strengthen foreign reserves. Additionally, the continuation of economic reforms, improving the business environment, and developing regulations are crucial factors in addressing future risks. Ultimately, the dirham remains a relatively stable currency, but its continued trajectory requires constant vigilance and flexibility in monetary and economic policies to address global changes.
Conclusion
In conclusion, the dirham is one of the currencies with deep historical roots and a vital role in the Gulf and Maghreb economies. It has contributed to the stability of regional trade and investment and enhanced the status of the UAE and Morocco as important economic hubs in the region and the world. The dirham has demonstrated significant resilience in the face of financial crises, thanks to cautious monetary policies, strong foreign reserves, and effective risk management. However, future challenges such as shifts in the global economy, fluctuations in oil prices, and the evolution of the digital economy require central banks and governments to continue developing economic policies and enhancing the flexibility of the financial system. It is important for anyone interested in the dirham and understanding its dynamics to keep up with changes in global markets and monitor central bank data and periodic economic reports. Finally, we emphasize the importance of consulting a licensed financial advisor before making any financial or investment decisions related to the dirham or foreign currencies in general, to ensure informed decisions that align with personal goals and risks.
Frequently Asked Questions
The dirham is a monetary unit used in several Arab and Islamic countries, most notably the United Arab Emirates and Morocco. The origin of the dirham dates back to the early Islamic eras, where it was adopted by the Umayyad Caliphate as a silver monetary unit alongside the gold dinar. The name dirham was revived as a modern national currency in the UAE in 1973 and in Morocco in 1960, reflecting sovereignty and economic independence in both countries. Today, the dirham is a symbol of stability and trust in the economies of these nations.
The Emirati dirham (AED) is the official currency of the United Arab Emirates and is pegged to the US dollar at a fixed exchange rate. The Moroccan dirham (MAD), on the other hand, is the national currency of Morocco and follows a semi-flexible exchange system against a basket of currencies. The Emirati dirham is managed by the Central Bank of the UAE, while the Moroccan dirham is issued by the Bank of Morocco. Both currencies play important roles in their national economies but differ in exchange policies and external linkages.
The Emirati dirham has been pegged to the US dollar at a fixed exchange rate since the 1980s to achieve monetary stability and enhance confidence among local and international investors. This peg reduces currency fluctuations and facilitates international trade and investment, especially since most UAE exports and imports are priced in dollars. However, this peg also limits the flexibility of local monetary policy, as interest rates and the liquidity of the dirham are influenced by movements in the dollar and the policies of the US Federal Reserve.
The stability of the dirham is crucial for the real estate and tourism markets as it provides investors and tourists with greater confidence in financial planning. In the UAE and Morocco, currency stability has attracted significant investments in the real estate sector and stimulated major projects. It has also made tourism costs clearer for foreign tourists, enhancing the appeal of the UAE and Morocco as global tourist destinations. Financial stability reduces the risks of price fluctuations, encouraging growth in both sectors.
Some of the key challenges facing the dirham include reliance on its peg to the US dollar, which reduces monetary policy flexibility; fluctuations in global oil prices that impact the Emirati economy and foreign currency reserves; shifts in the global economy; and technological changes related to the digital economy. Morocco also faces pressures from trade deficits and slowing growth in some export sectors. Countries exporting the dirham need to adopt precautionary policies and ongoing reforms to maintain currency stability.
The dirham is recognized as an official currency in the countries that adopt it (the UAE and Morocco) and is accepted in commercial and financial transactions with international partners. In the UAE, the dirham is used to settle trade and investment deals with a large number of countries and is accepted in some global banks as a convertible currency. However, it is not a global reserve currency like the dollar or euro and is limited to transactions associated with the countries that export it.
A stable dirham exchange rate against foreign currencies facilitates companies' planning for importing and exporting goods and services, as the risks of currency fluctuations decrease. In the UAE, the dirham's peg to the dollar makes the cost of imports clearer and more stable, especially for dollar-priced goods. In Morocco, the dirham's exchange rate affects the competitiveness of exports and import costs, and relative stability helps support the trade balance and attract foreign investments.
The dirham plays a pivotal role in international financial transfers, especially in the UAE, which is one of the largest countries exporting transfers. The stability of the dirham reduces exchange costs and increases the confidence of expatriate workers and investors in sending and receiving money. In Morocco, transfers from expatriates in dirhams significantly support the national economy and increase foreign reserves, enhancing local consumption and investment.
The digital economy has enhanced the importance of the dirham as a currency for electronic payments and digital transfers in the UAE and Morocco. The spread of digital wallets and online banking has increased the speed and efficiency of financial transactions in dirhams, reducing reliance on traditional cash. At the same time, the digital shift poses challenges related to information security and compliance with international standards, requiring central banks to develop regulations and systems to protect the financial system.
The exchange rate and movements of the dirham can be monitored through the websites of central banks (the Central Bank of the UAE, the Bank of Morocco) or through currency trading platforms and local commercial banks. Financial news websites and economic analysis platforms also provide periodic reports on exchange rates and trends of the dirham against major currencies such as the dollar and euro. It is advisable to rely on official and reliable sources for accurate data on the dirham.
The dirham is not used as an official currency in the Saudi stock market, but it has an indirect impact through trade and investment relations between Saudi Arabia and the UAE. The stability of the dirham facilitates financial transfers and trade between the two countries, enhancing the attractiveness of investment in joint projects. The dirham is also used to settle some trade and service transactions between Saudi and Emirati companies, reflecting the importance of the dirham in regional economic integration.