AED & USD - Markets & outlook
United Arab Emirates dirham - AED:
February 5, 2026
Key Factors Influencing the UAE Dirham (AED):
1. Fixed Exchange Rate Peg: The UAE Dirham remains pegged to the US Dollar at a rate of 3.6725 AED to 1 USD, ensuring stability in the currency's value. (uaeforexbrokers.com)
2. Oil Revenue Impact: Fluctuations in global oil prices directly affect the UAE's foreign reserves, which are crucial for maintaining the Dirham's peg. (uaeforexbrokers.com)
3. Monetary Policy Alignment: The UAE Central Bank adjusts its interest rates in line with the US Federal Reserve to preserve the currency peg, influencing domestic liquidity and investment flows. (uaeforexbrokers.com)
4. Economic Diversification Efforts: The UAE's expansion into sectors like tourism, real estate, and finance attracts foreign investment, bolstering the Dirham's strength. (uaeforexbrokers.com)
5. Geopolitical Stability: The UAE's political and economic stability enhances investor confidence, supporting the Dirham's value. (uaeforexbrokers.com)
6. Currency Symbol Introduction: In March 2025, the UAE Central Bank unveiled a new symbol for the Dirham, marking a milestone in its global recognition. (dmo.dof.gov.ae)
7. Remittance Advantages: Recent depreciation of Asian currencies, such as the Indian Rupee and Pakistani Rupee, has increased the value of remittances sent from the UAE, benefiting expatriates. (timesofindia.indiatimes.com)
These factors collectively contribute to the UAE Dirham's stability and its role in the global economy.
