Outlook
The UAE Dirham remains firmly pegged to the USD at 3.6725 per USD, guiding a calm near term outlook despite global volatility. Policy alignment—most recently with a 25 basis point base-rate adjustment in late 2025 to 3.90%—helps sustain stability. January 2026 data show Asian currencies (INR, PKR, PHP) weakened versus the Dirham, boosting remittance value for expatriates sending money home. A March 2025 change to the Dirham’s symbol is unlikely to affect rates but reflects ongoing currency modernization.
Key drivers
- Stable peg to the USD supports minimal rate drift and predictable pricing for imports, exports, and remitters.
- Asian currencies weakening vs the Dirham in January 2026 enhances remittance value for expatriates.
- UAE Central Bank policy alignment with the US Fed reinforces currency stability.
- Branding changes (new Dirham symbol) are unlikely to move the rate in the near term.
Range
AED/USD is steady at 0.2723 USD per AED (3-month average).
AED/EUR is at 0.2306 EUR per AED (7-day low), within a 3-month range of 0.2263–0.2350 (about 3.8%).
AED/GBP is 0.2019 GBP per AED, near its 3-month average, trading in a 0.1968–0.2061 range (about 4.7%).
AED/JPY is 42.45 JPY per AED, near the 3-month average, within a 41.47–43.32 range (about 4.5%).
What could change it
- A surprise move in US or UAE monetary policy that disrupts the USD-AED peg (for example, unexpected Fed or UAE Central Bank policy shifts).
- Sharp changes in global risk appetite or oil prices that alter external demand for the Dirham.
- Significant shifts in remittance corridors (INR, PKR, PHP) beyond current trends.
- Structural developments related to the Dirham’s regime or domestic macro data that prompt policy reassessment.
