The UAE Dirham (AED) has shown relatively stable performance against major currencies, influenced by several recent developments. The AED to USD exchange rate remains steady, reflecting a consistent trend with its 3-month average at 0.2723. This stability is underpinned by the UAE’s strong economic fundamentals, as highlighted in the recent International Monetary Fund (IMF) report that projects a robust GDP growth of 4.8% for 2025.
Moreover, the AED has seen slight gains against the Euro, reaching a 7-day high of 0.2347, which is 0.7% above its 3-month average of 0.2331. This indicates a modest upward trend amidst fluctuating market conditions. Similarly, the AED to GBP exchange rate has risen to 0.2037, 0.6% above the 3-month average of 0.2024. Analysts suggest that the weakened dirham—approx. 8% lower against the British pound—has contributed to a significant 62% increase in British investments in Dubai real estate, as developers have strategically capitalized on this depreciation to attract foreign buyers.
In contrast, the AED has appreciated against the Japanese yen, trading at 41.33, which is 2.3% above its 3-month average of 40.42. This upward movement reflects a broader trend of stability and minor gains across various currency pairs, with trading ranges remaining quite contained.
Ultimately, the currency swap agreement between the UAE and Turkey, valued at 18 billion AED, enhances liquidity and fosters further confidence in the AED's stability. These developments suggest the Dirham could maintain its steadiness, fostering attractive opportunities for businesses and individuals engaged in international transactions.
