Analysts Say that the UAE Dirham will Remain Relevant in the coming Years

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The global economy is always facing ups and downs. There are countless factors that help shape the economy and each of these factors have results that can be felt throughout the world. As always, the best way to gauge the state of the global economy is to look at how it affects the value of different currencies. There are a handful of influential currencies in the world that analysts like to keep an eye on.

The appreciation and depreciation of these currencies allow analysts to see patterns in economic trends. In 2019, the Gulf Countries have undergone several economic reforms. These have resulted in their currencies, including the UAE Dirham, facing ups and downs. The Dirham seems to be benefitting from these changes as it is set to become a very strong currency in the coming years. In fact, it is set to become the strongest currency in the sub-continent.

The United Arab Emirates economy has enjoyed notable growth for many years. Thanks to this, the UAE Dirham has become one of the strongest currencies in the subcontinent. It has reigned over other currencies for a decade now and according to analysts, it shall continue to enjoy this supremacy for more years.

In the coming years, the US Dollar is set to be the most dominant currency worldwide. And since the Dirham is tied with the Dollar, it too shall maintain its value. The Dirham will easily remain the top dog in the sub-continent region. Other currencies that will come close to the Dirham include China’s Yuan, Russia’s Rubel, and India’s Rupee. All of these countries are set to enjoy economic growth in the years to come. However, none of them will be able to compete with the Dirham.

If we look at economic trends in the past ten years, many countries in the sub-continent and the rest of the world have had to put up with inflation. Countries such as Pakistan and the Philippines have seen their currencies depreciate due to economic crises and account deficits. Even the British Pound has devalued in the past 10 years. This is mostly due to the uncertainty being caused by Brexit. A 19% decline in the British Pound is overshadowed by a 23% decline in the Euro. The Euro’s depreciation is largely owed to the weak economic fundamentals of European countries.

A worldwide inflation trend has resulted in many currencies seeing a downward trend in their value. And according to analysts, this trend will continue for the next 10 years. And throughout, the dollar is expected to stay at the top. However, this does not mean that the Dollar will be left untouched by this global downward trend. In 2020, the Dollar is also expected to weaken.

New trends in 2020 will weaken the Dollar while other global currencies will enjoy a recovery in their value. This trend will be great news for emerging markets as this trend will support their growth.

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