Exchange rates for the euro have declined by around nine percent against the UAE’s dirham (AED) in the local market during the past two months, Al Etihad newspaper reported, adding that this decline was due to the euro falling in international markets owing to the pressure resulting from negative expectations from the economies of European countries.

The euro’s exchange rate fell from AED 5.10 in August to AED 4.63 at present (October), registering one of the lowest exchange rates for the European currency against the dirham in years.

Zaraat Hussein, general manager at Al Ahlia Insurance Company – Abu Dhabi, has confirmed the exchange rate decline from AED 5.10 in August to AED 4.63 at present. The unified euro currency retreated by around 40-50 fils within a two-month period, he added.

On his part, Osama Al Rahma, general manager of Al Fardan Exchange, said that the European Central Bank is looking to reduce the euro’s exchange rate against the dollar and other major currencies using indirect financial policy tools.

This exchange rate reduction aims to entice the growth of European economies especially after euro-countries began registering negative or very slow economic growth, Al Rahma added.