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.