The CHF to AED exchange rate is currently stable, maintaining a range-bound bias.
Key drivers include the Swiss National Bank's recent interest rate cuts to 0.5% in response to falling inflation, which fell unexpectedly to 0.1% in October. These developments are putting downward pressure on the Swiss franc's attractiveness compared to the UAE dirham. Meanwhile, the UAE's economic growth is projected to be strong, with a forecast of 4.9% growth for 2025, supported by robust performance in non-hydrocarbon sectors.
Near-term, the CHF to AED rate is expected to stay within a narrow range, reflecting strong stability over the next few months. Upside risks include a potential rebound in Swiss exports if tariffs are lifted or reduced, while downside risks consist of further negative interest rate policies by the SNB if the franc remains strong.