Citation:

Abdulazeez Y.H. Saif-Alyousfi. "The Impact of COVID-19 on Exchange Rate in Arab Economies" International Research Journal of Economics and Management Studies, Vol. 2, No. 4, pp. 338-344, 2023.

Abstract:

This research investigates the impact of COVID-19 on exchange rates in Arab economies from 2017 to 2022, utilizing a comprehensive panel dataset covering 22 Arab countries. Employing the pooled ordinary least square (OLS) estimator, the results reveal a significant negative influence of COVID-19 on exchange rates, indicating that higher COVID-19 prevalence exerts considerable downward pressure on currency values. The study also identifies the negative impact of GDP on exchange rates, underscoring the importance of economic growth for exchange rate stability. Conversely, a positive relationship is found between unemployment and exchange rates, as investors seek stability during economic uncertainty. Importantly, inflation rates do not significantly affect exchange rates in this context. These findings hold vital policy implications, emphasizing the need for effective pandemic response measures, economic growth strategies, and labor market policies in Arab economies to maintain exchange rate stability.

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Keywords:

Exchange Rate; COVID-19; Arab Economies.