Skip to the main content

Original scientific paper

https://doi.org/10.1080/1331677X.2021.1959368

COVID-19 and currency market: a comparative analysis of exchange rate movement in China and USA during pandemic

Chuanjian Li
Zhi-Wei Su
Tanzeela Yaqoob
Yumna Sajid


Full text: english pdf 1.866 Kb

versions

page 2477-2492

downloads: 346

cite


Abstract

By aiming to understand the importance of the ongoing effects of
COVID-19 on several economies, this study attempts to highlight
the impact of COVID-19 confirmed cases and deaths occurring in
the most affected countries of the world such as China and the
USA, especially in the context of their respective currencies. For
this purpose, the daily data from January 22, 2020, till May 7,
2021, has been taken into account, and then has been analyzed
to examine the linear relationship between the currency and proxies of the COVID-19 pandemic. Moreover, the (autoregressive distributed lag) ARDL model has been employed in order to fulfil the
research objective with numerous statistical diagnostic measures,
so as to validate the model. The results indicate that the exchange
rate is affected negatively due to the effect of COVID-19 cases and
deaths in particular countries. Moreover, the effect of the pandemic is not limited to the short run only, but also in the long
run, as it is hurting the financial backbone of China and the USA.

Keywords

China; COVID-19; exchange rates; ARDL; linear relationship; United States

Hrčak ID:

302283

URI

https://hrcak.srce.hr/302283

Publication date:

31.3.2023.

Visits: 456 *