Why 1 US Dollar Is Always 3.6725 AED (and How to Convert Currencies)

Updated 27 September 2026 · 5 min read

One US dollar is worth 3.6725 UAE dirhams, today and every day, because the dirham is pegged to the dollar. That makes dollar conversions easy, but it doesn't mean your bank, exchange house or card will give you exactly that rate. Here's how the peg works and how to avoid losing money when you convert.

This is general information, not financial advice. Fees vary by bank and card, so check your bank's schedule of charges or ask the bank directly.

What the peg is

The UAE officially fixed the dirham at 3.6725 to the US dollar in November 1997, as The National reports. The Central Bank of the UAE (CBUAE) keeps it there by trading with the market. Its market operations page says it intervenes automatically to keep the peg stable, buying US dollars at 3.672 and selling them at 3.673.

The peg is still in place in 2026. The CBUAE's own daily rate sheets, such as the June 2026 file, list the US dollar at 3.6725 on every date.

In practice, this means the AED to USD rate doesn't move the way euro or pound rates do. The dirham's value against other currencies moves with the dollar: when the dollar strengthens against the euro, so does the dirham.

Converting between AED and USD

AED = USD × 3.6725

USD = AED ÷ 3.6725 (the same as AED × 0.2723)

• USD 250 × 3.6725 = AED 918.13
• USD 1,499 × 3.6725 = AED 5,505.08
• AED 1,000 ÷ 3.6725 = USD 272.29
• A monthly salary of AED 15,000 ÷ 3.6725 = USD 4,084.41

Round to two decimal places at the end, not halfway through, or small differences creep in on larger amounts.

Quick mental maths

• USD to AED: multiply by 3.67. Or multiply by 11 and divide by 3: USD 300 × 11 ÷ 3 = AED 1,100 (exact: AED 1,101.75).
• AED to USD: multiply by 0.27. Or multiply by 3 and divide by 11: AED 1,100 × 3 ÷ 11 = USD 300 (exact: USD 299.52).
• Anchors worth remembering: AED 100 is about USD 27.23, and USD 100 is AED 367.25.

These shortcuts are accurate to within about 1%. That's fine for checking a price in a shop, but use the exact rate for invoices and transfers.

Why your bank shows a different rate

Banks and exchange houses make money on the gap between the rate they buy at and the rate they sell at (the spread), and sometimes on a separate fee as well. So at a counter you might see a buy rate a little below 3.6725 and a sell rate a little above it, even though the official rate hasn't moved.

CBUAE rules require licensed institutions to be open about this. Under its Consumer Protection Standards, a schedule of fees must be on display in branches and on the institution's website, and buy and sell rates against the dirham for major currencies must be shown clearly.

For other currencies, such as euros, pounds or rupees, rates change throughout the day. Whatever the currency, compare the amount you'll actually receive after fees, not just the headline rate.

Card fees and the "pay in AED?" prompt

When you pay in a foreign currency with a UAE card, your bank may add a foreign transaction fee on top of the card network's exchange rate. The amount depends on your bank and card and is listed in the bank's schedule of charges. Check whether it applies to US dollar purchases too, including online shopping from US websites.

Abroad, a card machine or ATM may ask whether you want to pay in AED or in the local currency. Choosing AED is called dynamic currency conversion (DCC): the merchant's provider converts the price for you using its own exchange rate, which can include extra fees or a markup. Visa says merchants and ATMs should give you the choice and must not choose on your behalf.

Paying in the local currency and letting your card handle the conversion is often the cheaper option, but not always. If the screen shows the DCC rate, compare it with a reference rate before you accept. If you aren't offered the choice, ask before you pay.

Using our AED Currency Converter

Our AED Currency Converter converts between dirhams and other currencies using live rates from a public rate service when one is available. For US dollars, it should show the pegged rate of about 3.6725.

1. Enter the amount you want to convert.
2. Pick the currency you're converting from and the one you're converting to.
3. Read the result, then allow for your bank's spread or card fees if you're about to pay or transfer.

Keep its limits in mind. It shows a reference rate, not what your bank, exchange house or card will charge, and it doesn't add spreads or fees. Its rates are only as current as the public service behind them, so for money you're actually sending, check the provider's final amount before you confirm.

If you run a business, the CBUAE also publishes monthly exchange rates for VAT calculations. Our UAE VAT guide and VAT Calculator cover the VAT side.

Frequently asked questions

Has the AED to USD rate ever changed?

Not since the peg was made official in 1997. The CBUAE's published daily rates still show 3.6725 in 2026.

Why did the exchange house give me less than 3.6725?

Because of the spread and any fees. The official rate is fixed, but each provider sets its own buy and sell rates around it and must display them.

Is the dirham pegged to any other currency?

No, only the US dollar. Against the euro, pound, rupee and others, the dirham moves as the dollar moves.

Should I pay in AED when using my card abroad?

Usually it's worth choosing the local currency and letting your card convert it, but compare the rates on screen if you can. Your bank's foreign transaction fee may apply either way.