Investors have considered the UAE dirham to be among the world's most stable currencies in terms of exchange rate stability. The reason for this is the country has imposed what you call a 'fixed' exchange rate system, which is where the price of a currency is “fixed” with respect to another currency.

Is dirham a strong currency?

The UAE Dirham is the currency of the United Arab Emirates. ... It is pegged to the U.S. dollar and is among the world's most stable currencies.

Is the UAE dirham stable?

The UAE dirham was launched in 1973 and has been pegged to the US dollar since 1980. The resultant stability of the dirham that has followed from the fixed exchange rate has served the UAE economy well – a fact which has been noted by the International Monetary Fund.