Acta academica karviniensia 2015, 15(4):41-53 | DOI: 10.25142/aak.2015.041

THE ISOLATION OF SUB-SAHARAN FLOATING CURRENCIES

Gábor Dávid Kiss1, Julianna Pontet2
1 University of Szeged, Faculty of Economics and Business Administration, Kálvária sgt. 1, 6722 Szeged, Hungary, Email:kiss.gabor.david@eco.u-szeged.hu
2 University of Szeged, Faculty of Economics and Business Administration, Kálvária sgt. 1, 6722 Szeged, Hungary, Email: pontet.julianna@gmail.com

The paper tested contagion effects among free floating African currencies and Euro with a control variable like the Euro-pegged CFA Franc. Contagion should be based on deep trade, funding and political relationships which was valid for connections between African countries and such developed countries like the United States or the Eurozone. The theory suggests increased common movements under shock periods which were tested on a daily time series between 2000 and 2015, studying relationships under recession periods in the United States or the Eurozone or under days with extreme fluctuation. The results presented contagions only for the emerging South African currency while the others proved to be relatively independent.

Keywords: Africa, contagion, extreme fluctuation, floating regime
JEL classification: C32, F31, F35

Received: October 14, 2015; Accepted: March 23, 2016; Published: December 30, 2015  Show citation

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Kiss GD, Pontet J. THE ISOLATION OF SUB-SAHARAN FLOATING CURRENCIES. Acta academica karviniensia. 2015;15(4):41-53. doi: 10.25142/aak.2015.041.
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