The recent developments affecting the UAE Dirham (AED) and New Taiwan Dollar (TWD) already indicate an intriguing landscape for the AED/TWD exchange rate. As of November 11, 2025, analysts note that the AED has been experiencing a period of stability, trading at 14-day lows near 8.3459. This level is just above its three-month average and has remained within a relatively tight range of 3.6% from 8.1767 to 8.4717, suggesting a well-contained price structure during this timeframe.
Key developments for the AED include a bilateral currency swap agreement with Turkey valued at 18 billion AED, signed on October 2, 2025. This move is anticipated to improve liquidity and facilitate smoother financial transactions between the UAE and Turkey. Coupled with an interest rate cut of 0.25 percentage points on September 19, 2025, which has bolstered investor confidence and led to gains in UAE stock markets, the AED's strength against various Asian currencies is noteworthy. Such developments have implications for remittance values, ultimately impacting sentiment towards the AED.
For the TWD, Taiwan's central bank has raised its economic growth forecast to 4.55% as of September 18, 2025, largely driven by exports in advanced semiconductors. However, the forecast does come with caution, as potential U.S. tariff increases may pose risks to Taiwan’s export-oriented economy. Moreover, fluctuations in currency value have put pressure on local exporters, as the TWD has seen significant volatility, swinging from 29 to over 30 TWD per USD in just a few months.
As positions in the market shift, Taiwan’s life insurers have adapted by increasing their foreign exchange volatility reserves, which has led to higher non-deliverable forward points for USD/TWD. This suggests heightened sensitivity to currency movements as companies adjust to evolving market pressures.
Market experts indicate that the stable range of the AED/TWD suggests cautious optimism amid the differing economic pressures faced by both currencies. Analysts expect any weakness in the AED may provide a buying opportunity for the TWD, especially if Taiwan continues to see strong economic performance, but potential tariff impacts remain a wildcard. Overall, the current market dynamics necessitate close monitoring as they unfold, as they will inform strategies for individuals and businesses engaging in foreign exchange transactions between the AED and TWD.
