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Due to centuries of trade and usage of the currency, dirham survived through the Ottoman Empire. Before 1966, all the emirates that now form the UAE used the Gulf rupee, which was pegged at parity to the Indian rupee. On 6 June 1966, India decided to devalue the Gulf rupee against the Indian rupee.
In 1966, coins were introduced in the name of Qatar and Dubai for 1, 5, 10, 25, and 50 dirhams. In 1973, a new series of coins was introduced in the same sizes and compositions as the earlier pieces but in the name of Qatar only. Only 25 and 50 dirham coins are now circulated, although smaller coins remain legal tender. [citation needed]
The dirham was a unit of mass used across North Africa, the Middle East, Persia and Ifat; later known as Adal, with varying values.. The value of Islamic dirham was 14 qirat. 10 dirham equals 7 mithqal (2.975 gm of silver).
The dinār is a gold coin weighing one mithqal (4.25 grams) and the dirham is a silver coin weighing 0.7 mithqal (2.975 grams). The relation of 20 dinār and 200 dirham reflects the contemporary exchange value between the dinār and the dirham of 1 to 10 in the early days of Islam. [2]
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Bahraini coins and notes were introduced at that time. Initially, Abu Dhabi adopted the Bahraini dinar but changed to the dirham in 1973, with 1 dirham = 100 fils = 0.100 dinar. Exchange rate
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