AED & USD - Markets & outlook
United Arab Emirates dirham - AED:
Date: November 11, 2025
Key Developments Affecting the UAE Dirham (AED):
1. Currency Swap Agreement with Turkey (October 2, 2025): The central banks of the UAE and Turkey signed a bilateral currency swap agreement valued at 18 billion AED ($4.9 billion). This deal aims to enhance local currency liquidity and streamline financial transactions between the two nations. (reuters.com)
2. Interest Rate Cut by UAE Central Bank (September 19, 2025): The UAE central bank reduced interest rates by 0.25 percentage points, aligning with the U.S. Federal Reserve's move. This decision led to a rise in UAE stock markets, reflecting increased investor confidence. (reuters.com)
3. Strengthening of the AED Against Asian Currencies (October 3, 2025): The AED appreciated against several Asian currencies, including the Indian Rupee, Pakistani Rupee, and Philippine Peso. This trend has enhanced the value of remittances sent by UAE expatriates to their home countries. (en.lanatime.com)
4. Retail Sukuk Initiative by UAE Ministry of Finance (October 2025): The UAE's Ministry of Finance launched a "Retail Sukuk" initiative, allowing citizens and residents to invest in government-backed Treasury Sukuk starting from AED 4,000. This move aims to broaden the investor base and foster long-term savings behavior. (nassersaidi.com)
Recent Developments Impacting the UAE Dirham:
- UAE, Turkey cenbanks sign $4.9-bln currency swap deal, Published on Thursday, October 02
- Dubai and Abu Dhabi shares climb on rate cut, Published on Friday, September 19
- UAE markets gain on rate cut optimism, Published on Friday, October 24
