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The dynamics of oil prices, COVID-19, and exchange rates in five emerging economies in the atypical first quarter of 2020

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  • Dacio Villarreal-Samaniego

Abstract

The spread of the COVID-19 and the drop in oil prices caused financial turmoil during the first quarter of 2020. This paper aims to examine the relationship between the COVID-19 pandemic, oil prices, and the exchange rates to the U. S. dollar during that period in five emerging economies: two oil-importers and three oil-exporters. The results of the autoregressive distributed lag analyses reveal a positive co-movement between the fatality rates and the exchange rates of three of those countries. The study also found a negative relationship between oil prices and the exchange rates of the five countries.

Suggested Citation

  • Dacio Villarreal-Samaniego, 2021. "The dynamics of oil prices, COVID-19, and exchange rates in five emerging economies in the atypical first quarter of 2020," Estudios Gerenciales, Universidad Icesi, vol. 37(158), pages 17-27, March.
    • Handle: RePEc:col:000129:019208
    DOI: 10.18046/j.estger.2021.158.4042
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    References listed on IDEAS

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    Cited by:

    1. Aamir Jamal & Mudaser Ahad Bhat, 2022. "COVID-19 pandemic and the exchange rate movements: evidence from six major COVID-19 hot spots," Future Business Journal, Springer, vol. 8(1), pages 1-11, December.
    2. Kumeka, Terver Theophilus & Uzoma-Nwosu, Damian Chidozie & David-Wayas, Maria Onyinye, 2022. "The effects of COVID-19 on the interrelationship among oil prices, stock prices and exchange rates in selected oil exporting economies," Resources Policy, Elsevier, vol. 77(C).
    3. Aissa Djedaiet & Hicham Ayad, "undated". "The double whammy of COVID-19 and oil price collapse: Spillover effects on inflation and exchange rates," Review of Socio - Economic Perspectives 202206, Reviewsep.
    4. Thobekile Qabhobho & Anokye M. Adam & Emmanuel Asafo-Adjei, 2023. "Do Local and International Shocks Matter in the Interconnectedness amid Exchange Rates and Energy Commodities? Insights into BRICS Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 666-678, November.
    5. Ricardo Jacob Mendoza-Rivera & Francisco Venegas-Martínez, 2021. "Impacto de la pandemia COVID-19 en los precios de la gasolina y el gas natural en las principales economías de Latinoamérica," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(3), pages 1-22, Julio - S.

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    More about this item

    Keywords

    foreign exchange; COVID-19; oil prices; cointegration.;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G01 - Financial Economics - - General - - - Financial Crises
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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