Karachi, May 12, 2025 – The exchange rate of the UAE Dirham (AED) remained steady against the Pakistani Rupee (PKR) today at 76.56 PKR in the open market, as reported by the latest currency exchange market updates.
This stability reflects a period of relative calm in the AED-PKR exchange rate, driven by steady remittance inflows and stable economic conditions in both Pakistan and the UAE.
Process of Valuation for AED-PKR Exchange Rate
The exchange rate between the UAE Dirham and the Pakistani Rupee is impacted by market dynamics and decisions made by central banks. The AED is pegged to the US Dollar at approximately 3.67 AED per 1 USD, a policy maintained by the Central Bank of the UAE since 1997. This peg ties the Dirham in foreign markets, causing its value to fluctuate with the US Dollar, bolstered by the UAE’s robust oil-driven economy and diverse investments.
1 UAE Dirham = 76.56 Pakistani Rupees
On the other hand, the PKR operates under a managed floating system that relies on supply and demand within the foreign exchange market, although the State Bank of Pakistan sometimes intervenes to stabilize currency fluctuations. Key factors determining the PKR’s value include Pakistan’s foreign exchange reserves, trade balance, inflation rate, and remittance inflows, with the UAE alone contributing $3.1 billion in remittances in February 2025.
The AED-PKR exchange rate is established daily based on interbank market rates and transactions in the open market. Banks and exchange houses determine the buying and selling rates, currently reflecting a buying rate of 76.56 PKR and a selling rate of approximately 77.25 PKR, indicating a slight premium for sellers. These exchange rates are updated periodically, typically around 8:00 AM Pakistan Standard Time, and can fluctuate throughout the day based on market conditions.
Impact of Stability
The consistency of the AED at 76.55 PKR carries long-term implications for Pakistan and its expatriates in the UAE. For over two million Pakistani expatriates residing in the UAE, a stable exchange rate translates to a reliable value of remittances, enabling them to make investments and support their families in Pakistan. This steady rate also benefits companies engaged in trade between the two nations, particularly in sectors like food, textiles, and construction materials, by mitigating currency risk.
For Pakistan’s economy, the stability of the AED-PKR exchange rate enhances remittance inflows, which play a vital role in the country’s foreign exchange reserves. According to analysts, this stability stems from balanced trade activities, improved foreign exchange reserves, and minimal speculative pressure in the currency market. The UAE remains one of Pakistan’s most significant financial channels, and remittances are a crucial factor in maintaining the PKR’s stability against other currencies. However, the PKR’s managed floating system makes it vulnerable to domestic influences such as inflation and trade deficits. Currency experts advise that, while the AED-PKR rate is robust at present, traders and investors should remain vigilant regarding global oil prices and geopolitical tensions, which could impact the US Dollar and, consequently, the value of the Dirham.
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Introduction to AED and PKR
The official currency of the United Arab Emirates is the UAE Dirham, which was established in 1973 to replace the Qatar and Dubai Riyal. It is issued by the Central Bank of the UAE and is divided into 100 fils, identified by the symbols “د.إ” or “Dhs.” The Dirham’s fixed exchange rate with the US Dollar contributes to its stability, supported by the UAE’s oil-reliant economy, prudent fiscal policies, and its role as a global trading hub. It is widely used across all seven emirates, including Abu Dhabi and Dubai, and is commonly accepted in popular tourist areas throughout the region.
The Pakistani Rupee (PKR) was introduced when Pakistan became independent in 1947, serving as the country’s official currency, which is further subdivided into 100 paise. It is denoted by the symbols “₨” or “Rs” and is issued by the State Bank of Pakistan. The PKR operates under a managed float system for its exchange rate, making it more susceptible to fluctuations based on domestic economic factors like inflation, trade deficits, and foreign exchange reserves. This currency plays a crucial role in Pakistan’s economy, with expatriate remittances, particularly from the UAE, significantly influencing its stability. Currently, the fixed rate of UAE Dirham at 76.55 PKR reflects the mutual economic ties between Pakistan and the UAE based on trade and remittances. While the AED benefits from a peg to the US Dollar, the value of the PKR is dictated by Pakistan’s overall economic fundamentals. The consistent exchange rate provides a sense of security for expatriates and businesses, although it is important to remain cautious, as both external and internal factors could impact future trends.
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