UAE currency appreciated in nominal terms in Q1 2020 driven by US dollar appreciation

UAE currency appreciated by 0.1% Q-o-Q and by 1.2% Y-o-Y


ABU DHABI - In Q1 2020, the UAE dirham appreciated in nominal terms on a Y-o-Y and Q-o-Q, due to the appreciation of the US dollar, according to the UAE Central Bank Quarterly Economic Review.

The report for the first quarter 2020 said against the currencies of the top-10 non-dollarized import partners, the UAE currency appreciated by 0.1 percent Q-o-Q and by 1.2 percent Y-o-Y.

''Against the currencies of the top-10 non-dollarized non-oil export partners, the appreciation was of 0.4 percent Q-o-Q and of 0.9 percent Y-o-Y, '' the report added.

''Accounting for all of the UAE’s trading partners, the Nominal Effective Exchange Rate, NEER, displayed the same pattern of appreciation relative to a basket of the weighted average of the currencies of major trading partners," it continued.

"In particular," the Quarterly Economic Review noted, "the average NEER appreciated by 0.5 percent and 2.4 percent Q-o-Q and Y-o-Y, respectively, in the first quarter of 2020, compared to an appreciation of 0.1 percent and 0.8 percent, respectively, in the previous quarter."

© Copyright Emirates News Agency (WAM) 2020.

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