The Governor of the Central Bank of the UAE has stressed on Saturday that the recent media reports related to a study on the dirham’s peg to the US dollar are not true.

The Governor further reiterated in a statement that fixing and safeguarding the official exchange rate of the dirham falls by law within the purview of the Central Bank’s Board of Directors, and that the policy of the fixed peg of the dirham against the US dollar will remain in place.

It is worth highlighting that the national economic indicators strongly support the continuation of the fixed peg regime. This exchange rate policy has contributed to maintaining economic stability and bolstering investors’ confidence over the long period it has been in effect, news media has reported.

“The UAE dirham fell to its lowest against the US dollar in more than a year in the one-year forwards market on Thursday, as speculation grew that slumping oil prices would lead Gulf states to ditch their currency pegs to the dollar,” Emirates 24/7 reported, adding that one-year dollar/dirham forwards rose by eight points, “pricing the dirham around 3.673/3.674 in a year's time and implying depreciation from the 3.67 spot rate”.

Worth noting, the UAE dirham is pegged to the US dollar at 3.6725 and is trading in the spot market at 3.6730.