Discover the value of Dubai currency in Nepal, AED to NPR exchange rates, remittance tips, and how small rate changes can impact your family's income.

Why Are We Talking About Dubai Currency?

Let’s start with a simple fact: More than 1.5 million Nepalis live and work in the United Arab Emirates (UAE), especially in cities like Dubai, Abu Dhabi, and Sharjah. Most of them send money back to their families in Nepal every month. This money is called remittance, and it plays a huge role in Nepal’s economy.

Now, to send money from Dubai to Nepal or to exchange money at home, you need to understand Dubai currency. That currency is called the United Arab Emirates Dirham (AED).

This article will help you understand what the Dubai currency in Nepal means, how it works, what the current rates are, how it affects your life, and how to get the best value for your money. We’ll keep everything simple, clear, and easy to understand. No complicated financial talk.

What is the Dubai Currency?

The official currency of Dubai is called the United Arab Emirates Dirham, or in short, AED. It is used in all seven Emirates of the UAE, including Dubai.

Some basics:

• AED full form: United Arab Emirates Dirham
• Symbol: د.إ in Arabic, or simply AED / Dh / Dhs in English
• Sub-units: 1 AED = 100 fils (like paisa in Nepal, but most people never use fils)

Coins and Notes:

• Coins: 25 fils, 50 fils, and 1 dirham

• 

• Notes: 5, 10, 20, 50, 100, 200, 500, 1000 dirhams

A Little History: Where Did the Dirham Come From?

The dirham has been the official currency of the United Arab Emirates (UAE) since 1973, but the story doesn’t start there.

What Was Used Before the Dirham?

Before 1973, the different emirates that make up the UAE didn’t all use the same currency. Back then, each region had its own preferred money system. Here’s a quick snapshot of what it looked like:

• In places like Abu Dhabi, the Bahraini Dinar was used.
• In Dubai and several other emirates, people used the Qatari Riyal, and Dubai Riyal, which at one point was also shared with Doha.
• Before that, the Indian Rupee (specifically, a version called the Gulf Rupee) was widely used across the Gulf region, including what is now the UAE.

This mix of currencies created confusion and complications, especially for trade, banking, and travel between emirates. Imagine living in Pokhara but having to use one currency, and your family in Kathmandu using another. It’s just not practical!

Why Create the Dirham?

When the UAE became a united country in 1971, its leaders wanted a single currency that would:

• Make trade and business easier across the seven emirates
• Help build a strong national identity
• Be simple for international partners and investors to work with

So in 1973, the United Arab Emirates Dirham (AED) was introduced to replace the patchwork of currencies and unify the economy.

This made the AED a symbol of unity, stability, and modern growth, which is one of the reasons why today, Dubai currency in Nepal is seen as reliable and valuable for remittances and exchange.

Fun Fact: The Name “Dirham”

The word “dirham” has ancient roots. It comes from the Greek word “drachma,” which was a silver coin used thousands of years ago in trade across Europe and the Middle East.

Over centuries, the name was adopted by Islamic and Arab traders, and eventually became the common term for currency in several parts of the Arab world.

Even today, Morocco and Jordan also use a currency called the dirham, but the UAE’s version, the AED, is the one that’s directly tied to the lives of millions of Nepalis abroad.

AED and the US Dollar: Why It Matters for Nepal

Here’s something important: The value of Dubai currency (AED) stays very stable because it is closely pegged to the US dollar.

When a currency is pegged to another, it means its value is intentionally fixed by the government. In this case, 1 USD = 3.6725 AED, and that has been the case since 1997. Just like how 1 INR is always equal to 1.6 NPR.

Why is the AED pegged to USD? Because the UAE wants stability in trade, especially since oil, their biggest export, is priced in US dollars. This peg helps keep inflation under control, encourages foreign investment, and ensures prices in the local economy don’t swing wildly. While it does offer a lot of benefits, pegging of currencies often comes with hidden costs, especially for countries like Nepal that are now engaging more with the global economy.

To dive deeper into this topic, check out our article:

The INR–NPR Fix: Time for Nepal to Rethink Its Currency Ties?

In simpler terms:

• The UAE central bank promises to always exchange AED for USD at a fixed rate.
• So, AED doesn’t float like other currencies, it follows USD closely.

So when you see the value of AED changing in Nepal, it’s not because the AED itself is changing. It’s because the Nepali Rupee (NPR) is going up or down in value.

In simple words:

• AED stays fixed to the US Dollar.
• NPR goes up and down based on Nepal’s economy.
• So if NPR becomes weak, 1 AED gives you more rupees.
• If NPR becomes strong, 1 AED gives you fewer rupees.

How Much is 1 AED in Nepali Rupees?

This is the number one question for many families and workers who deal with Dubai currency in Nepal: How much is 1 AED worth in NPR today?

According to the most recent rate published by Nepal Rastra Bank (NRB):

• 1 AED = Around NPR 37.38

But here's something important to remember: This rate changes every single day. Even if AED is stable in Dubai, the value you get in Nepal changes because it depends on how strong or weak the Nepali Rupee is that day.

Where to Check the Rate

To avoid getting less value for your money, always check the latest exchange rate before you exchange or send money. You can:

• Visit the Nepal Rastra Bank (NRB) website
• Check with commercial banks
• Ask at licensed forex counters
• Use remittance or digital wallet apps with real-time rates

Why Does the AED to NPR Rate Change?

If AED is fixed to USD, why does the Dubai currency in Nepal keep changing in value?

Simple answer: It's because the Nepali Rupee (NPR) changes.

Here are the main reasons:

1. Nepal’s Trade Situation

When Nepal imports more than it exports, we spend more foreign currency than we earn. That reduces the supply of USD or AED, which makes NPR weaker in comparison.

2. Foreign Currency Reserves

Nepal Rastra Bank manages the foreign currency reserves. If reserves are low, NPR value drops, and Dubai currency in Nepal becomes more expensive.

3. Global Events

Things like wars, pandemics, oil price hikes, or economic crises around the world can make the USD stronger or weaker, and NPR feels the effect too.

So, in short:

• If NPR weakens, 1 AED gives you more rupees (good for those receiving remittances).
• If NPR strengthens, 1 AED gives you fewer rupees (good for importers or travelers).

Past Trends: Has the Rate Changed Much?

Let’s look at the recent performance of Dubai currency in Nepal to see how much it moves.

This means:

• In the last 3 months, the value of AED has dropped slightly by about 1.32%.
• A difference of even 1 rupee per AED can matter if someone is sending 1000 or 2000 AED.

For example:

• 1,000 AED = NPR 38,150 (at NPR 38.15 rate)
• 1,000 AED = NPR 37,070 (at NPR 37.07 rate)

That's a difference of NPR 1,080, which could cover groceries for a small family for a week!

Why Is Dubai Currency Important for Nepal?

The Dubai currency in Nepal is not just about numbers, it's about survival, dreams, and daily life for many.

Remittances from UAE:

• The UAE is one of the top destinations for Nepali migrant workers.
• Every year, billions of rupees come to Nepal as remittances.

• According to NRB, remittance is one of the biggest sources of foreign currency for Nepal.

  What This Money Does:

Families in Nepal use remittance to:

• Buy food, clothes, and daily essentials
• Pay school fees for their children
• Build or repair their homes
• Save for medical needs or emergencies

So when the AED strengthens and the NPR weakens, families in Nepal get more money per dirham sent. That’s why Dubai currency in Nepal matters a lot  if it directly affects the quality of life of millions.

Where to Exchange AED in Nepal

Let’s say your brother is coming back from Dubai with some AED cash. What should he do to get the best value?

Your Exchange Options:

1. Commercial Banks

• Almost all big banks exchange AED.
• They offer reliable service and standard rates.

• Good for large amounts.

  2. Licensed Money Changers

• Found in areas like Thamel (Kathmandu), Lakeside (Pokhara), and other city centers.
• May offer slightly better rates for small amounts.
• Be sure they are licensed by NRB.

3. Digital Wallets / Remittance Apps

• Apps like IME Pay, Khalti, and eSewa have tie-ups with remittance companies.
• Money sent from Dubai can land directly into a wallet or bank account in Nepal.
• Convenient, fast, and often with good rates.

Things to Remember:

• Always check the rate before exchanging.
• Use only authorized agents, avoid roadside vendors.
• Carry your ID (like citizenship or passport) for bigger transactions.
• If you’re exchanging a large amount, call ahead to ensure they have enough NPR.

How to Send Money from UAE to Nepal

Nepalis in Dubai have many ways to send money home. Let’s break them down:

1. Traditional Money Transfer Services:

• Western Union, MoneyGram, Prabhu Remit
• Money can be picked up in cash from agents in Nepal.
• Fast, but sometimes fees are high.

2. Digital Transfers:

• Many people use mobile apps or websites to send money directly.
• Money goes straight to bank accounts or mobile wallets.
• Often cheaper and faster.

Tips for Sending Money:

• Compare both fees and exchange rates.
• Check for hidden costs.
• Use trusted apps and companies.

AED to NPR: Why the Rate Moves

You might be wondering, if the AED is fixed to the USD, why does it still change in Nepal?

It’s because of the Nepali rupee, not the AED.

Here are some reasons why the AED to NPR rate might go up or down:

1. USD to NPR Changes: If the dollar gets stronger, so does the AED.
2. Inflation in Nepal: When prices rise quickly, NPR loses value.
3. Imports and Exports: If Nepal buys more from abroad than it sells, it needs more foreign currency.
4. Political or Economic Uncertainty: Big events can shake the value of NPR.

So remember: If the Nepali rupee is weak, you get more NPR for each AED.

AED vs INR in Nepal: Which One's Better?

Many Nepalis also work in India. So how does the Dubai currency in Nepal compare with the Indian currency?

INR to NPR:

• Fixed rate of 100 INR = 160 NPR (set by Nepal Rastra Bank)
• Very stable, doesn’t change much

AED to NPR:

• Changes daily, but not too much
• Slightly more volatile than INR

Verdict?

• AED might move more, but wages are higher in UAE, so you earn more overall.

Some Quick FAQs on Dubai Currency in Nepal

Q. What is 1 AED worth in Nepal today?
A. 1 AED = NPR 37.38 as of April 23, 2025

Q. What’s the best way to send AED to Nepal?
A. Use trusted remittance services. Compare rates and fees.

Q. Is it safe to carry AED cash to Nepal?
A. Yes, but there are limits.

You can safely bring Dubai currency in Nepal as cash, but:

• If you're carrying more than USD 5,000 (around AED 18,365), you must declare it at customs.
• Always use licensed banks or money exchangers to convert AED, never the black market.
• Failing to declare large amounts can lead to fines or seizure of your money.

Q. Is AED more stable than NPR?
A. Yes. Because it’s tied to the US dollar, AED doesn’t change much.

Final Thoughts: Why It Pays to Understand Dubai Currency in Nepal

If you or someone in your family earns in AED or sends money from Dubai, it’s important to understand how the Dubai currency in Nepal works.

• A small difference in exchange rates can mean thousands of rupees gained or lost.
• Always check official rates.
• Avoid black market exchanges.
• Use trusted banks or apps.

The more you know about AED and NPR, the more financially smart your choices become. And that’s money well saved or earned!

Stay informed. Stay updated. And make every dirham count.

Additional Resources: 

• Nepal’s Trade Deficit Shrinks: But Is It A Good Sign for Our Economy 
• The Great Nepali Paradox: Issuance of Labour Permit Increases while Remittance Inflows Take A Dip 
• 10 Ways to Earn Money Online in Nepal Without Investment (2025) 
• Nepal vs USA Trade: Why Nepal Might Win Big Under New US Tariff Policy