Recent developments in the currency markets indicate mixed signals for the exchange rate between the UAE Dirham (AED) and the Fijian Dollar (FJD). As of October 2025, the AED to FJD exchange rate has recently dipped to near 14-day lows around 0.6185, although it trades just above the three-month average, reflecting a stable range with fluctuations limited to about 3.1% from 0.6072 to 0.6263.
Analysts point to a number of factors affecting the AED, notably the newly established currency swap agreement between the UAE and Turkey. This 18 billion AED deal is intended to enhance local currency liquidity and facilitate financial transactions, potentially strengthening the AED in the medium term. Meanwhile, the UAE's strategy to attract British property buyers by capitalizing on a weaker dirham has seen investment from British nationals rise significantly, which could further support the currency's value.
The International Monetary Fund (IMF) has also provided a positive outlook for the UAE economy, projecting a 4.8% GDP growth for 2025. Experts assert that this economic resilience is likely to bolster confidence in the AED, contributing to its stability against other currencies, including the FJD.
On the other hand, the FJD is experiencing benefits from reduced U.S. tariffs on Fijian exports, which have been slashed from 32% to 15%. This change enhances the competitiveness of Fijian goods in a critical market. However, the IMF projects Fijian economic growth to moderate, estimating it will be around 3% for 2025, and other forecasts have even downgraded this figure to 2.7%. The tourism sector's slowdown from key markets could further strain the FJD's performance.
Additionally, domestic economic activities, such as the positive economic contribution of the Fijian Drua rugby team's success, underline the importance of the sports sector to Fiji's economy. However, the limited growth forecasts may weigh on the FJD's value as it attempts to navigate these challenges.
Overall, experts suggest that while the AED is positioned to remain relatively stable due to ongoing economic developments in the UAE, the FJD may face headwinds as it adapts to changes in trade dynamics and economic growth forecasts. Currency market participants should remain vigilant and informed as these factors unfold, particularly when considering international transactions involving AED and FJD.
