Foreign currency of almost any denomination can be exchanged in the UAE.
You can exchange money in hotels and at any of the licensed money exchange centres in the UAE, which are located at airports, in malls and in public markets.
Foreign banks have branches in the UAE. Their ATMs are placed at several locations in public places.
Credit cards, currency cards and traveller's cheques are widely accepted in the UAE.
ATMs typically provide the best exchange rates (even when factoring in possible currency exchange fees from your home bank), but traveller's cheques in either US Dollar or UK Pounds Sterling are recommended to avoid additional exchange rate charges.
Refer to the guidelines issued by the Central Bank regarding genuine bills.