ABU DHABI 9 October 2018: The UAE dirham has continued to appreciate in Q2 2018 against the currencies of the country’s top 10 non-dollar trade partners, according to Central Bank of the UAE statistics.
From the import side, the weighted dirham’s appreciation against its top-10 non-dollar import partners, which claim 52.3 per cent of the UAE total imports, was 1.3 per cent, with the highest quarterly appreciation recorded against India’s Rupee at 4.03 per cent and 3.16 per cent over the Euro.
The dirham has crossed the Rs20 mark and till last night each dirham fetched Rs.20.1 at UAE Exchange.
The recent decline in the Chinese Yuan against the US currency bolstered the UAE dirham against RMB with 0.3 perc ent during Q2, said Wam.
China is considered the UAE’ top import exporter ,accounting for 18.7 per cent of the country’s import.
Other Currencies
The UAE currency also appreciated against the Japanese Yen by 0.78 per cent, and 0.75 percent against Korea (South) Won and 2.35 per cent against the GB Pound and 3.94 per cent against Swiss Franc.
In terms of the non-oil exports, the UAE currency appreciated 2.09 per cent during the Q2 against the country’s top-10 non-dollar export partners.
Dirham appreciated 4.03 per cent versus India’s Rupee – India is contributing 10.7 per cent of the country’s non-oil exports. During the Q3, the UAE currency continues to gain momentum against Iraq’s Dinar, which was up 0.59 per cent and Pakistan’s Rupee which rose by 5 per cent on a quarterly basis. The non-oil exports of the two countries combined account for 6.42 per cent of the UAE’s non-oil exports.
The UAE currency appreciated as well on an annual basis against the currencies of the country’s non-oil export partners until the Q2 2018, gaining 2.05 percent backed by its appreciation of 3.9 per cent against Indian Rupee and 11.4 per cent Pakistan’s currency.
The average nominal exchange rate appreciated 2.4 per cent during the Q2 2018 as compared to the preceding quarter following a depreciation of 2.7 per cent during Q1 of the same year.
The real exchange rate which takes into consideration the difference in inflation between the UAE and its trade partners, appreciated 1.2 percent during Q2 2018.