Exchange rate fluctuates against top import, export partners
The UAE Dirham in Q1-2019 depreciated against the currencies of top 10 non-dollarised import and non-oil export partners by 0.81 pc and 0.53 pc, respectively, on a quarterly basis, according to the Quarterly Economic Review of the Central Bank of the UAE.
On a Y-o-Y basis, the AED appreciated against top 10 non-dollarized import and non-oil export partners by 4.41 pc and 5.86 pc, respectively.
On the imports side, the UAE Dirham depreciated in Q1 against its top 10 non-dollarised import partners, which account for 52.3 pc of the total imports, to reach -0.81 pc Q-o-Q, compared to an appreciation of 0.74 pc in the previous quarter.
Further, the AED depreciated mainly against emerging market economies’ currencies, which sharply appreciated during the first quarter of 2019.
Bilateral exchange rates show that the AED depreciated mainly against the Chinese Yuan (China has the largest weight in the import basket, around 18.7pc) by Q-o-Q 2.41 pc.
Furthermore, the AED depreciated against the Indian Rupee Q-o-Q by 2.23 pc compared to an appreciation of 2.73 pc in the previous quarter. The national currency depreciated against the Japanese Yen (2.28 pc), the South Korean Won (0.21 pc), the Pound Sterling (1.31 pc) and the Turkish Lira (2.29 pc). However, the AED appreciated against the Euro Q-o-Q by 0.46 pc, compared to an appreciation of 1.96 pc in the previous quarter, and against the Swiss Franc (0.14 pc).
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