The market for the AED to FJD exchange rate is currently range-bound.
Key drivers include the interest rate policies of both countries, with the Reserve Bank of Fiji maintaining a low Overnight Policy Rate of 0.25%, while the UAE's Central Bank aims to support growth amid high expectations for GDP. Additionally, the launch of the Digital Dirham may boost the UAE's financial profile, while Fijian export challenges due to US tariffs have led to slower growth projections.
In the near term, the exchange rate is expected to trade within a stable range, given it has recently reached near 7-day highs. Upside risks could arise from an unexpected acceleration in UAE economic growth or successful integration of the Digital Dirham. Conversely, downside risks include worsening export conditions for Fiji or shifts in global interest rates affecting both currencies.