Recent forecasts and market updates suggest a complex landscape for the CHF to AED exchange rate. As of December 2025, the CHF is trading at 4.6535, which is 1.3% higher than its three-month average of 4.5953. This stability, with the CHF having fluctuated within a range of 4.5306 to 4.6612, signals a relatively strong position for the Swiss Franc amidst various economic pressures.
The Swiss National Bank (SNB) has maintained a zero interest rate policy, reflecting a cautious stance amid global trade tensions and low inflation, with the latest figures showing a persistent inflation rate of 0.2%. Analysts note that the SNB may consider further easing measures as deflationary pressures continue. Additionally, the International Monetary Fund (IMF) has warned of external risks, including geopolitical tensions that could affect Switzerland's economic stability and, by extension, the performance of the CHF.
On the horizon, speculation about a potential trade deal between the United States and Switzerland, which could see tariffs on Swiss exports reduced from 39% to 15%, is contributing to expectations of a stronger CHF. This follows earlier tariffs that had negatively impacted the Swiss economy and the currency significantly.
In contrast, the UAE Dirham has remained stable despite recent cuts to the Central Bank's interest rate. The reduction to 3.90% aligns the AED closely with the US dollar, reflecting the effectiveness of the UAE's fixed exchange rate regime. The upcoming launch of the digital dirham and efforts to modernize financial infrastructure are seen as positive moves to enhance economic stability in the UAE, which may also influence the Dirham's performance.
Overall, the CHF may have room to strengthen against the AED if trade relations improve and domestic inflation remains subdued. However, external pressures and CHF's traditionally safe-haven status must be monitored closely as they will significantly affect the dynamics of the currency pair in the near term.
