The AED to VND exchange rate is currently range-bound.
Key drivers include:
- The interest rate differential between the UAE and Vietnam shows tighter monetary policy in the UAE, supporting the Dirham against the Đồng.
- Economic growth projections indicate a robust 4.9% GDP growth for the UAE, while Vietnam aims for an ambitious 10% growth target, which could enhance its economic stability.
- Recent inflation forecasts suggest stability in Vietnam, expected to hover around 4.5%, while the UAE benefits from its fiscal resilience.
In the near term, the exchange rate is likely to fluctuate within a stable range, maintaining current price levels.
Upside risks include a positive reception and broader adoption of the Digital Dirham, which may further solidify the AED's position. Conversely, downside risks could emerge from potential delays in Vietnam's legislative elections, impacting investor confidence and economic policy direction.