The exchange rate forecast for the AED to FJD pairing indicates a stable outlook, with the current rate at 0.6121 being 1.3% below its three-month average of 0.62. Analysts note that the rate has remained within a relatively narrow range of 4.8%, trading between 0.6097 and 0.6388 over the recent months. This stability can largely be attributed to the UAE dirham's longstanding peg to the US dollar, which has been fixed at approximately 3.6725 to $1 since 1997.
Looking ahead, economic forecasts suggest that the Fijian dollar could face upward pressure as the tourism sector in Fiji is set to experience significant growth. As projected, tourism will develop into a $FJ3 billion industry by the end of 2024, driven by an anticipated influx of up to a million tourists annually. The opening of new markets in Asia and Canada, along with increased investments in resorts and hotels, will likely strengthen the FJD in the long-term.
Experts believe that the stable nature of the AED against the USD, combined with Fijian economic growth, may impact the exchange rate dynamics. While the dirham offers a level of certainty due to its peg, any notable strengthening of the FJD in response to tourism-driven economic developments could slightly adjust the exchange rate, favoring those involved in international transactions or travel between the UAE and Fiji.
Markets will be closely watching these indicators, as fluctuations in the FJD could provide opportunities for individuals and businesses engaging in currency exchange or transactions involving both currencies in the upcoming months.