The United Arab Emirates dirham (AED) is the official currency of the United Arab Emirates and is often abbreviated as "Dh" or "Dhs." Introduced in 1973, it replaced the Qatar and Dubai riyal. The dirham is subdivided into 100 fils and is widely used in the UAE for all transactions. Its name derives from the Greek "drachma" highlighting historical trade links. The currency is pegged to the US dollar, offering stability in exchange rates.