The current exchange rate of the UAE Dirham (AED) to Vietnamese Đồng (VND) is approximately 7165, aligning closely with its three-month average and fluctuating within a stable range of 0.8% from 7139 to 7198. Recent developments in both the UAE and Vietnam suggest that various economic strategies and pressures will influence this rate.
Analysts note that the newly established currency swap agreement between the UAE and Turkey, valued at 18 billion AED, is expected to enhance liquidity and support greater financial stability for the AED. Following the IMF's favorable assessment of a 4.8% GDP growth forecast for 2025 in the UAE, the economy appears resilient amid global uncertainties. Such positive economic indicators may bolster confidence in the AED.
Conversely, the Vietnamese Đồng has encountered considerable depreciation against major currencies. The VND has weakened approximately 14% against the Euro since January, and projections from Vietcombank Securities indicate a further 3% depreciation against the US dollar in 2025. Experts attribute these trends to a strong US Dollar and the ongoing impact of US tariffs on Vietnamese exports. Consequently, the Vietnamese government is contemplating currency depreciation as a strategy to maintain export competitiveness.
The Federal Reserve's recent decision to cut interest rates has provided some stabilization room for the VND. Analysts suggest that this easing could help mitigate the pressure on the exchange rate, fostering an environment for potential recovery.
In summary, while the AED benefits from positive economic developments, the VND faces challenges that could exert downward pressure on its value. The dynamic interplay of these factors will be crucial for businesses and individuals engaging in currency transactions between the AED and VND.
