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Bott

Any Advice On The Aed Against The Pound?

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Hi all, I am a british expat living and working in dubai. For the first time ever I am able to save up some money, not much but enough for a 10 per cent deposit back home when things get sensible... anyway the Dirhams i have seem to be continually being devalued against the pound. I thought the pound was very weak or was heading towards being weak. Now I am a numpty so be gentle with me. Also I heard that the AED is pegged to the dollar. Why is this? and is there any chance of this arrangement changing in the near future. I will probably be out here for a good few years so don't mind saving and waiting for the exchange rate to go my way. Any advice would be greatly appreciated as well as any thoughts on the dubai economy.

Cheers

Botty

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Hi all, I am a british expat living and working in dubai. For the first time ever I am able to save up some money, not much but enough for a 10 per cent deposit back home when things get sensible... anyway the Dirhams i have seem to be continually being devalued against the pound. I thought the pound was very weak or was heading towards being weak. Now I am a numpty so be gentle with me. Also I heard that the AED is pegged to the dollar. Why is this? and is there any chance of this arrangement changing in the near future. I will probably be out here for a good few years so don't mind saving and waiting for the exchange rate to go my way. Any advice would be greatly appreciated as well as any thoughts on the dubai economy.

Cheers

Botty

If its pegged, then thats your reason for it falling against the pound. If for example one dollar is kept constant at 1 AED then as the dollar drops against the pound so does the AED. As the housing recession hits the UK too, the pound should drop vs the dollar so vs the AED too.

As for the peg its generally been used to keep currencies undervalued, so exports are cheap while imports are expensive. Not sure why though for dubai since its primary export is oil & gas, which is not something there is an excess of in the world markets or that can be sourced cheaper elsewhere.

Some of the gulf states have talked about dropping the peg.

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  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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