UAE currency rules: What happens if a note is torn or damaged?

The Central Bank of the United Arab Emirates (CBUAE) has underscored the significance of protecting the country’s banknotes, describing the national currency as a “symbol of our sovereignty and a pillar of our economy.”

In a recent social media post, the bank emphasised that preserving banknotes not only protects national identity but also strengthens public trust in the economy.

Tips to protect UAE banknotes

The Central Bank advised the public to handle currency carefully, offering the following guidelines:

• Avoid defacing, tearing, or damaging banknotes

• Avoid folding, crumpling, stapling, or handling banknotes with sharp objects.

• Keep banknotes away from liquids, high temperatures, adhesives, and avoid writing on them

Strengthening trust in the financial system

“By protecting the UAE’s national currency, we reinforce confidence in the country’s financial system,” the Central Bank said. This reminder highlights that even small actions—like careful handling of banknotes—play a role in safeguarding both the economy and national identity.

Replacing damaged or mutilated banknotes

If you have a torn or damaged banknote, the CBUAE has provided clear guidelines on how to replace it, including the conditions under which compensation will be provided.

Compensation depends on the condition of the note

• Full compensation: Two-thirds or more of the original banknote (or combined parts) is intact. The holder receives the full face value.

• Half compensation: More than one-third but less than two-thirds of the banknote remains. The holder receives half the note’s value.

• No compensation: One-third or less of the note is intact. No compensation is provided.

Applicable only to official currency

These rules apply strictly to banknotes issued by the Central Bank. Each case is individually assessed for authenticity and eligibility before compensation is issued.