Assessing the impact of the Russia-Ukraine war and COVID-19 on selected European currencies and key commodities

This study measures the spillover effects of the Russia-Ukraine war and the COVID-19 pandemic on currency pairs as the Russian ruble, Czech koruna, Polish zloty, Hungarian forint, Swedish krona, Bulgarian lev, Danish krone, Romanian leu, Ukrainian hryvnia, and Turkish Lira. By employing the TVP-VAR...

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Main Authors: Florin Aliu, Yelyzaveta Apanovych, Ujkan Bajra, Artor Nuhiu
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2024-11-01
Series:Journal of Business Economics and Management
Subjects:
Online Access:https://journals.vilniustech.lt/index.php/JBEM/article/view/22518
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author Florin Aliu
Yelyzaveta Apanovych
Ujkan Bajra
Artor Nuhiu
author_facet Florin Aliu
Yelyzaveta Apanovych
Ujkan Bajra
Artor Nuhiu
author_sort Florin Aliu
collection DOAJ
description This study measures the spillover effects of the Russia-Ukraine war and the COVID-19 pandemic on currency pairs as the Russian ruble, Czech koruna, Polish zloty, Hungarian forint, Swedish krona, Bulgarian lev, Danish krone, Romanian leu, Ukrainian hryvnia, and Turkish Lira. By employing the TVP-VAR model we investigate the dynamic connectedness among these currencies and key energy and agricultural commodities. The data series encompasses two consecutive non-economic shocks – the Ukraine war and the COVID-19 pandemic – and a preceding period of general stability during 2018 and 2019. The importance of geopolitical context in shaping currency dynamics was present in countries with heavy dependence on Russian gas. The findings indicate a limited direct impact of commodity price fluctuations on the value of these currencies. At the same time, geopolitical decisions primarily related to the Russian Ruble and energy dependencies significantly impacted their valuation. The study reveals the complexity of currency dynamics and the influence of geopolitical risks and global health crises on exchange rate volatility and commodity dependencies.
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2029-4433
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publishDate 2024-11-01
publisher Vilnius Gediminas Technical University
record_format Article
series Journal of Business Economics and Management
spelling doaj-art-bda82b0baa784f1f98f22a40166dc8e82024-11-18T16:29:04ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332024-11-0125510.3846/jbem.2024.22518Assessing the impact of the Russia-Ukraine war and COVID-19 on selected European currencies and key commoditiesFlorin Aliu0Yelyzaveta Apanovych1Ujkan Bajra2Artor Nuhiu3School of Expertness and Valuation, Institute of Technology and Business, Ceske Budejovice, Czech RepublicSchool of Expertness and Valuation, Institute of Technology and Business, Ceske Budejovice, Czech Republic; Faculty of Economics and Business, Pan-European University (PEU), Bratislava, SlovakiaDepartment of Mathematics, University of Prishtina, Prishtina, Republic of Kosovo; Institute for Economic Research and Legal Studies, Prishtina, Republic of KosovoDepartment of Financial Law, Faculty of Law, University of Prishtina, Prishtina, Republic of Kosovo This study measures the spillover effects of the Russia-Ukraine war and the COVID-19 pandemic on currency pairs as the Russian ruble, Czech koruna, Polish zloty, Hungarian forint, Swedish krona, Bulgarian lev, Danish krone, Romanian leu, Ukrainian hryvnia, and Turkish Lira. By employing the TVP-VAR model we investigate the dynamic connectedness among these currencies and key energy and agricultural commodities. The data series encompasses two consecutive non-economic shocks – the Ukraine war and the COVID-19 pandemic – and a preceding period of general stability during 2018 and 2019. The importance of geopolitical context in shaping currency dynamics was present in countries with heavy dependence on Russian gas. The findings indicate a limited direct impact of commodity price fluctuations on the value of these currencies. At the same time, geopolitical decisions primarily related to the Russian Ruble and energy dependencies significantly impacted their valuation. The study reveals the complexity of currency dynamics and the influence of geopolitical risks and global health crises on exchange rate volatility and commodity dependencies. https://journals.vilniustech.lt/index.php/JBEM/article/view/22518Russia-Ukraine warCOVID-19TVP-VARcurrency dynamicsenergy and agricultural commoditiesFX market
spellingShingle Florin Aliu
Yelyzaveta Apanovych
Ujkan Bajra
Artor Nuhiu
Assessing the impact of the Russia-Ukraine war and COVID-19 on selected European currencies and key commodities
Journal of Business Economics and Management
Russia-Ukraine war
COVID-19
TVP-VAR
currency dynamics
energy and agricultural commodities
FX market
title Assessing the impact of the Russia-Ukraine war and COVID-19 on selected European currencies and key commodities
title_full Assessing the impact of the Russia-Ukraine war and COVID-19 on selected European currencies and key commodities
title_fullStr Assessing the impact of the Russia-Ukraine war and COVID-19 on selected European currencies and key commodities
title_full_unstemmed Assessing the impact of the Russia-Ukraine war and COVID-19 on selected European currencies and key commodities
title_short Assessing the impact of the Russia-Ukraine war and COVID-19 on selected European currencies and key commodities
title_sort assessing the impact of the russia ukraine war and covid 19 on selected european currencies and key commodities
topic Russia-Ukraine war
COVID-19
TVP-VAR
currency dynamics
energy and agricultural commodities
FX market
url https://journals.vilniustech.lt/index.php/JBEM/article/view/22518
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