Recently, the exchange rate dynamics between the UAE Dirham (AED) and the Vietnamese Đồng (VND) have been influenced by several developments in both markets. Analysts are noting that the AED is currently trading at 30-day highs near 7,175 VND, reflective of a stable trend that has seen it move within a 0.6% range from 7,153 to 7,198 VND over the past few months.
In the UAE, a significant currency swap agreement with Turkey, valued at 18 billion AED, is expected to enhance liquidity in local currencies, promoting smoother financial transactions. Furthermore, the UAE Central Bank's recent interest rate cut of 0.25 percentage points has sparked positive investor sentiment, contributing to a steady appreciation of the AED against various Asian currencies, including the VND. This trend aligns with forecasts suggesting that the AED could continue to strengthen, further supported by initiatives such as the Retail Sukuk launched to broaden the investment base.
On the other hand, the outlook for the VND seems less favorable. Experts predict a depreciation of approximately 3% against the US dollar in 2025, a factor that may also affect its standing against the AED. The Vietnamese Central Bank has intervened in the market, selling $1.5 billion to stabilize the currency amid these pressures. Additionally, the imposition of tariffs by the United States has put further strain on the VND, prompting adjustments to maintain export competitiveness.
The combination of the AED's strengthening position and the potential for the VND's depreciation suggests that businesses and individuals engaged in transactions between these two currencies should strategize accordingly. As the markets evolve, staying informed about these developments is essential for making cost-effective decisions in forex exchanges.
