About the United Arab Emirates Dirham (AED)
The United Arab Emirates Dirham (AED) serves as the official currency of the UAE, subdivided into 100 fils. Key features include:
- Exchange Rate Peg: Fixed at 3.67 AED per 1 USD, ensuring stability against the US dollar.
- Currency Symbol: Introduced in March 2025 by the UAE Central Bank, combining the Latin letter "D" with two horizontal lines.
👉 Explore real-time AED/USDT exchange rates
Understanding Tether (USDT)
Tether (USDT) is a leading cryptocurrency stablecoin pegged 1:1 to the US dollar. Highlights:
Market Dominance
- Reserves: $118.4 billion (August 2024), including $5.3 billion in excess reserves.
- Profitability: Earned $1.3 billion in Q2 2024, totaling $5.2 billion for H1 2024.
- User Base: Over 350 million global users as of July 2024.
Blockchain Integration
- Operates across 14 protocols/blockchains, including Ethereum and Solana.
- Owned by iFinex, the parent company of Bitfinex exchange.
👉 Compare AED/USDT liquidity across platforms
AED/USDT Trading Dynamics
| Factor | Details |
|---|---|
| Liquidity | High due to USDT’s market share |
| Volatility | Low (Stablecoin advantage) |
| Regulatory Status | Varies by jurisdiction |
FAQ Section
Q: Why is AED pegged to the USD?
A: To ensure economic stability and simplify international trade.
Q: How does USDT maintain its 1:1 peg?
A: Through transparent reserves and regular audits.
Q: Where can I trade AED/USDT pairs?
A: Major exchanges like OKX offer this pairing.
Key Takeaways
- AED: Stable, USD-pegged fiat currency.
- USDT: Dominant stablecoin with robust reserves.
- Trading Pair: Combines AED’s stability with USDT’s crypto flexibility.