 The UAE's monetary policy is in the service of stability and predictability, as the Central Bank of the UAE (CBUAE) keeps a peg to the US Dollar (USD) and moves interest rates close to the Federal Funds Rate.This policy makes sense in the current situation of global and regional economic and geopolitical uncertainty.Also considering the fact that exports have become the main driver of the UAE's economic growth (the contribution of international trade to GDP grew from 31% in 2017 to 33.5% in 2018, outpacing overall GDP growth for the period), and the fact that the AED is currently undervalued, a departure from this policy – and particularly the peg – would negatively affect this important part of the UAE economy in the short term.