Which institution is the United Arab Emirates’ central bank and issuer of the dirham?
Answer
Central Bank of the UAE
The Central Bank of the UAE is the United Arab Emirates’ central bank and issuer of the dirham.
It was established in 1973, shortly after the federation was formed in 1971. Its responsibilities include managing monetary and credit policy, maintaining currency stability, and supporting the banking system.
The bank also supervises licensed financial institutions and manages the UAE’s official reserves. The dirham was introduced in 1973, replacing the Qatar and Dubai riyal and the Bahrain dinar in the emirates.
The Central Bank of the UAE should not be confused with the Ministry of Finance, which handles government fiscal policy, or with commercial banks such as Emirates NBD.