The plummeting euro is likely to trigger a wave of cheaper imports from Europe to the UAE, according to Gulf News, keeping a lid on rising inflation.
This week, with the European Central Bank set to strengthen its stimulus programme and with fears rising of a Greek exit, the currency plunged to a nine-year low against the dollar, rendering imports to the UAE up to 15 per cent cheaper than last year.
Europe accounts for around 22 per cent of the UAE's total imports, mostly food products such as meat, cheese, fruit and vegetables.
With the euro expected to fall further in the coming months, such a trend is likely to continue, with Ashwin Shetty of UAE Exchange suggesting the currency could reach €1.10 to the dollar by October.
