Research Communication | Open Access
Volume 2021 | Communication ID 71
Volume 2021 | Communication ID 71
| The challenging journey to floating: How did COVID19 transform the domestic Forex Market in Africa? |
Hamza Bouhali
Received |
Accepted |
Published |
January 25, 2021 |
February 15, 2021 |
March 15, 2021 |
Abstract: This article investigates the impacts of transition process steering and the COVID19 pandemic on domestic forex market behavior. To do so, we conducted a comparative analysis based on various GARCH family models and the case of four African countries which adopted different transition paths from fixed to intermediary and/or floating regimes. Our main empirical result is that smooth and gradual transition allows for a better adaptation of the domestic market actors, resulting in improved liquidity management and shocks absorption than countries with forced regime switch. We also notice a ...