Dubai Currency history

In 1973, the U.A.E. Currency Board introduced notes in denominations of 1, 5, 10, 50, 100 and 1000 dirham. A second series of note was introduced in 1982 which omitted the 1 and 1000 dirham notes. 500 dirham notes were introduced in 1983, followed by 200 dirham in 1989. 1000 dirham notes were reintroduced in 2000. Banknotes are currently available in denominations of 5 (brown), 10 (green), 20 (light blue), 50 (purple), 100 (pink), 200 (green/brown), 500 (navy blue) and 1000 (greenish blue) dirham.

The obverse texts are written in Arabic with numbers in Eastern Arabic numerals; the reverse texts are in English with numbers in Hindu Arabic numerals. The 200 dirham denomination is scarce as it was only produced in 1989; any circulating today come from bank stocks.

Historically, Dirham has been very important in the Middle East because it was the main form of exchange for a very long time. The word is derived from "drachm" ancient Greek coin. The modern Dirham of UAE gained prominence after the discovery of oil in this region. Before the formation of UAE in 1972, Indian Rupee and Gulf Rupee were commonly used in Dubai and other parts of the region. The currency is issued by the United Arab Central Bank and it has been pegged with the U.S.Dollars at 1 US Dollar = 3.67 AED, which has remained constant since about 28 years.

AED (A.E.D.) is the ISO 4217 code for United Arab Emirates Dirhams. Dirham's Numeric code is 784. The UAE Dirham came into operation in 1973 when it replaced the Qatar and Dubai Riyals.

However, people in UAE prefer to write the unofficial abbreviation of Dhs. or DH. Hindi/Urdu/Gujarati speaking expatriates from India/Pakistan also refer to the Dirham as "Rupiya" (Rupee / Rupees) or "Paisa", which is not only the currency in India and Pakistan but also the generic name for money. It is not uncommon to hear a local Arab asking an expatriate vendor "Kitna Rupiya" or "Kitna Paisa".

The Dirhams is divided into 100 fils. "Fils" is a singular form whereas "Fuloos" is the plural, which is also the Arabic for money.

The coins currently in use in UAE are 25-Fils, 50-Fils and 1-Dirham whereas lesser denomination are not in common use, viz. 1, 5 & 10 Fils.

Fils is not only the subdivision of UAE Dirham but also the subdivision of Bahraini Dinars, Iraqi Dinars, Kuwaiti Dinars which are 1000 Fils in a Dinar and Yemeni Rials which are 100 Fils for a Rial.The AED is available in a total of 8 different denominations viz. 1000, 500, 200, 100, 50, 20, 10 & 5 Dirhams. The notes are printed on one side in Arabic and on the other side in Engish. The 200 Dirham note were last printed in 1989 and now are rarely found in circulation.
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Understanding forex forecast Dubai Forex

Market players in the Dubai Forex market should not only give importance to the past and present transactions, they should also give a considerable amount of attention to the future possibilities of their business. For this reason, you’ll find that there are a number of websites offering foreign exchange forecasts. Nonetheless, an efficient Forex trader should not rely on one or two predictions. Successfully trading in the Forex market, whether you’re investing from Dubai or elsewhere, involves evaluating the different information you get from various sources.

What is Forex Forecasting?

A Forex forecast is typically a product of the definitive research which would show you in advance the conditions that will take place at a certain future date. However, it is important to know that predictions are just what they are – predictions, and does not guarantee that they will actually happen. There are several factors that come into play when forecasting live Forex rates but even so, it is possible to consistently project currency prices within a range of acceptable margin of error.

Forex forecasts consists of high and low currency predictions, including daily and weekly time frames through advanced trading technology as well as the market experiences of Forex experts. In addition to that, there are also numerous Forex trading tools around the Internet that provides Forex predictions of price movements. These tools are also used for trading other security investments. Most Forex forecasting tools in the market today generate standard trading tools like RSI, Fibonacci levels, Stochastic and Moving Averages.

Day traders often use daily high/low forecasts as a guide for entry and exit points. Position traders; on the other hand, utilizes the daily/weekly predictions for stop losses and trailing stops to follow the best Forex signals. Position traders use the weekly predictions when choosing trading opportunities that offer the most reward in conjunction with the trading signals.

Methods in Forex Forecasting

Dubai Forex traders depend heavily on fundamental analysis to analyze the current trend as well as predict future price movements. The facts and data that they come up with are used to forecast the direction of the economy as well as the UAE stock market and how these would impact the currencies. 

The two major methods used in analyzing the currencies are the Fundamental Analysis and Technical Analysis. Each of these is different from another but serve a common purpose and that is predicting the currency movements. In a nutshell, technical analysis deals on the past performances as indicated by charts and graphs while fundamental analysis is based on events that have occurred in the past. This type of analysis takes into account different environment factors like political changes and natural disasters among many others. 
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How Forex rates are influenced ? Dubai Forex rates

The Forex market is a complex mechanism that is based upon various factors that can impact the success or failure of a specific trade. This article will take a look at some of the influences that can affect daily Forex rates. If you’re new to Forex, don’t make another move without understanding these Forex basics. And if you’ve been trading for a while, you may want to remind yourself of what influences are out there in case any of them have fallen off your radar. 

Market Differences

Many traders regard Forex as a large melting pot for current international developments because no other institution responds to them so quickly and appropriately as this market does. In addition, Forex exhibits a number of significant differences from other markets, such as the stock market. For instance, Forex trading is not conducted at a centralized exchange that displays daily Forex rates. Instead, all its transactions are undertaken by using either the OTC (over the counter) via phone, electronic networks or the Interbank Market. 

Speculation Sector

You will find that there are two main sources that produce the gigantic daily Forex turnover of about $3 trillion. The speculation sector accounts for ninety-five 95% of all Forex transactions, which are conducted for pure profit only. This element, which includes investment funds, large banks, corporations and individuals, generates artificial rate exposure using the Forex daily rates in order to produce profits from the movements of price.

Consequently, you may be surprised to find out that the majority of Forex trading is of a speculative nature only. In fact, the currency conversion needs of governments and businesses generate only a small percentage of the overall Forex activity.

Foreign Sector

The foreign sector is responsible for the other 5% and is produced by international businesses selling and purchasing their materials and products overseas as well as converting their currency needs. This section of traders includes companies (exporters and importers), governments and other investors who require foreign currency conversions.

The business performance of these organizations can be directly influenced by the oscillating movements of their domestic currency against those of their overseas investment or businesses using the Forex daily rates.

Economic Events

Economic factors include economic conditions and policy making. For instance, a government can directly affect the interest rates displayed by its central bank by introducing new financial policies. Such measures can have serious knock-on effects on its currencies because investors tend to follow those currencies offering the highest yields. If such an announcement is made, then you can observe the effects on the applicable currency by studying the daily Forex rates.

Political Influences

If political instability and upheaval occur within a country then such events can have a significant negative influence on its economy and again on its currency. As such developments increase risk aversion, you will almost certainly witness the effected currency decline in value against those of others by examining the daily Forex rates.

Article is published from http://www.dailyforex.com/forex-articles/2011/03/Factors-that-Influence-Daily-Forex-Rates/7397
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