GBP to AED Exchange Rate
Ahh, the United Arab Emirates. Where else can you get police who drive Lamborghinis and gold bars dispensed from an ATM?
What influences the AED/GBP exchange rate?
Like many Gulf currencies, the United Emirates Dirham (AED) is pegged to the U.S. dollar. Since 1997, the AED has been pegged to the U.S. dollar at a fixed rate of 3.6725 dirhams to 1 USD. That means the AED/GBP exchange rate will move in tandem with USD fluctuations.
While the UAE is a major petroleum exporter, the price of oil will not influence the AED/GBP exchange rate because of the U.S. dollar peg. Instead, the relative strength of the U.S. economy and announcements by the Federal Reserve and Bank of England may influence the GBP/AED exchange rate. Policy changes that affect U.K. trade relations with Europe could cause the pound to fluctuate against the U.S. dollar and may consequently have an effect on the GBP/AED exchange rate.
It is not just strong economic ties that our two nations share. We also share historical and cultural links. More than 100,000 British nationals live and work in the UAE, joined by over one million British tourists every year. This is mirrored by the thousands of Emiratis who come to UK as tourists or to study at our world-leading academic institutions.
--British Embassy of Dubai and Abu Dhabi
The UAE’s major exports are petroleum products and gold with 85% of its exports headed for Asia.3
The export portfolio of the U.K. is very diverse with machines, medications, chemicals and cars making up some major export categories. While the U.S. is the dominant single trade partner for the U.K. accounting for 11% of exports, close to 60% of all U.K. exports go to continental Europe.4
Dubai is home to the world’s tallest building: the Burj Khalifa. At 828 meters high, the Burj Khalifa opened in 2010 and took just six years to complete. By contrast, The most famous buildings in the U.K., like Westminster Abbey, are nearly 1000 years old.
AED to GBP exchange rate analysis. Check out our daily market analysis to learn the factors influencing the AED to GBP exchange rate today.
For a more general discussion about exchange rate forecasting and macroeconomic factors to consider, check out this article.
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