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USD/AED Peg Stability Stress Test

The UAE Dirham (AED) has been pegged to the US Dollar (USD) at 3.6725 since 1997. While highly stable, institutional risk committees mandate stress testing for theoretical de-pegging scenarios when committing to long-duration US assets.

Investment Profile

US Asset Value ($M USD)

Current Peg (AED per 1 USD)

Stress Scenario: AED Appreciation (%)

If AED appreciates (strengthens), USD assets lose relative value in local currency.

Local Currency Impact

Base Value (AED)

Stressed Peg (AED per USD)

Stressed Value (AED)

JavaScript Required: A 10% appreciation of the AED against the USD results in a 10% unrealized local-currency loss on unhedged US assets.