50 Fils – United Arab Emirates

In 1995, the currency situation in the United Arab Emirates was one of notable stability, underpinned by the UAE Dirham's firm peg to the US Dollar. This peg, established in 1978, fixed the exchange rate at approximately AED 3.67 per USD 1. This policy was a cornerstone of the country's economic framework, providing predictability for foreign trade and investment, which were vital for the UAE's rapidly diversifying, oil-dependent economy. The link to the dollar helped control inflation and facilitated the UAE's integration into the global financial system, particularly as the country positioned itself as a burgeoning hub for commerce and finance in the Gulf region.

The monetary system was managed by the UAE Central Bank, which maintained substantial foreign exchange reserves, primarily in US dollars, to defend the fixed parity. This period saw little to no speculative pressure on the dirham, as the economy was buoyed by steady oil revenues and growing confidence in the federation's political and economic direction following the 1990-91 Gulf War. The currency's stability was further reinforced by the UAE's membership in the Gulf Cooperation Council (GCC), where discussions about a potential common currency—inspired by the European Union—were in their early, conceptual stages.

Consequently, the currency landscape in 1995 was characterized by quiet confidence. There were no significant devaluations or exchange rate crises, unlike in some emerging markets of the era. The dirham functioned as a reliable medium of exchange and store of value domestically, while its dollar peg simplified transactions in the dominant hydrocarbons sector and the expanding import-export trade. This stable environment provided a solid financial foundation for the massive infrastructure projects and economic diversification efforts that would accelerate in the lead-up to the new millennium.