Yes. The AED has been officially pegged to the US Dollar at a fixed rate of 3.6725 AED = 1 USD since 22 November 1997. This means the exchange rate between AED and USD does not fluctuate with market forces — it is maintained by the Central Bank of the UAE through its foreign exchange reserves. The peg provides currency stability, reduces transaction costs for international trade, and anchors inflation expectations. Because oil — the UAE's primary export — is priced globally in USD, the peg also eliminates exchange rate risk on the country's largest revenue stream.