The average nominal and real exchange rate of the UAE dirham increased during last July, according to the latest statistics of the Central Bank of the Emirates.
The Central Bank explained that the nominal effective exchange rate, which takes into account multiple exchange rates for the national currency against a weighted basket of the UAE’s main trading partners, rose by 2.1% on an annual basis last July, up from 1.8% on an annual basis in the previous month. This was due to the rise in the US dollar index.
The Central Bank stated that the real effective exchange rate of the dirham, which takes into account inflation differences between the UAE and its trading partners, rose by 1.2% compared to the same period of the previous year.
The Central Bank indicated that the low rise in the real effective exchange rate reflects the low inflation rate in the UAE compared to its trading partners.
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