Changes in exchange rates impact the economy of every country. They also affect everyone in the world, including you. Think about how many imported goods you have used today.

Imagine a can of soft drink made in the UK as an example. It costs £1 there.

If the exchange rate between the UAE and the UK is £1 = 4.80 dirhams, then the drink would cost about 5 dirhams in the UAE. But if the exchange rate changed to £1 = 7 dirhams, the drink would become more expensive to buy in the UAE. And if the exchange rate becomes £1 = 3 dirhams, the drink would become cheaper to buy in the UAE.

Because we need so many products from all over the world, exchange rates influence how expensive goods are in our country.