The current exchange rate for CHF to AED has recently dipped to 14-day lows around 4.5618, which is approximately 0.7% below the three-month average of 4.5917. This trend has been characterized by relative stability, with fluctuations ranging from 4.5214 to 4.6732.
Recent developments in Switzerland show the Swiss National Bank (SNB) increasing foreign currency purchases significantly in Q2 2025, reaching 5.06 billion CHF—a response to the franc's appreciation spurred by new U.S. tariffs on Swiss exports. Analysts caution that this increased intervention may indicate concerns over the impact of a strong franc, especially given the deflationary pressures resulting from its rise. Specifically, the SNB has indicated it will maintain its policy rate at 0.00% throughout 2026, which reinforces expectations of minimal interest rate movement in the near term.
The effective U.S. tariffs, pegged at 39%, could lead to adverse outcomes for Switzerland’s export-driven economy, affecting the strength of the CHF. The market is wary as this backdrop worsens financial pressures on Swiss firms, prompting some to consider relocating operations to sustain profit margins.
In the UAE, a recent currency swap agreement worth 18 billion AED between the central banks of the UAE and Turkey aims to bolster liquidity and facilitate smoother financial transactions. Such agreements typically support the stability of the AED. Additionally, real estate developers in Dubai are harnessing the weakened dirham to attract British buyers, contributing to a dramatic increase in property investment. Coupled with a positive growth forecast of 4.8% for the UAE economy from the IMF, the AED appears to maintain a relatively strong position in the current environment.
Overall, market observers note that with the SNB’s interventions and interest rate stances, combined with the geopolitical impacts of U.S. tariffs, the CHF may face continued upward pressure in the short term, while the conditions in the UAE suggest a resilient AED amidst a fluctuating regional landscape.
