Market experts have expressed near certainty that the UAE dirham is likely to remain pegged to the dollar, and that therefore, a rise in US interests rates will almost surely spell a similar rise for the Emirates' currency.
The UAE central bank nearly always increases interest rates when the US chooses to., as the bank made a committed to maintaining the dirham's peg to the dollar under a larger plan to create a common currency in the GCC by 2010. It therefore increases interest rates each time the US does.
As a result though, according to a report in Gulf News, the UAE's monetary policy decision is in fact decided by conditions in the US, rather than local ones
