Dirham

The dirham is the official currency name in several countries, most prominently the United Arab Emirates, Morocco, and Djibouti. Each country issues its own dirham with its own monetary authorities and exchange rates. The term dirham has historic roots as a unit of weight and as a coin in the Islamic world, deriving from the ancient Greek drachma.

In the United Arab Emirates, the dirham (AED) is issued by the Central Bank of the UAE and subdivided into 100 fils. In Morocco, the dirham (MAD) is issued by Bank Al-Maroc and subdivided into 100 centimes. In Djibouti, the dirham (DJF) is issued by the Bank of Djibouti and subdivided into 100 centimes.

Exchange-rate regimes vary. The UAE dirham is pegged to the U.S. dollar at a fixed rate. The Djiboutian dirham is also pegged to the U.S. dollar. The Moroccan dirham operates under a managed float with a reference basket and periodic band stabilization, gradually liberalizing its exchange-rate regime since the 2010s.

Beyond contemporary currencies, dirham has historical usage as a coin and unit of account in various Islamic states. Today, it remains the everyday denomination for commerce and savings in its issuing countries, while other countries and economies may refer to dirhams in historical or regional contexts.