UAE central bank governor says exchange rate peg with USD is their “continued commitment”

Reuters reporting comments from the Central Bank of UAE gov Mubarak Rashid al-Mansouri at a conference in Dubai

  • immediate impact of US interest rate hike will be “appropriate adjustment” of UAE rates
  • further tightening in bank liquidity due to customer deposit slowdown also challenging
  • lower oil prices may lead to further fiscal consolidation
  • closely monitoring banking sector to ensure risks do not escalate to full blown crisis

In 1978, the Dirham adopted a fixed exchange rate to the IMF’s special drawing rights (SDR). It was then re-pegged to the US Dollar in 1997 at a rate of 1 USD to 3.6725 AED.

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