African financial markets in a storm: Cryptocurrency safe havens during the COVID-19 pandemic

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Published Apr 6, 2021
Seyram Pearl Kumah David Adjei Abbam Ransford Armah Evelyn Appiah-Kubi


The COVID-19 pandemic provides the first widespread bear market conditions since the inception of cryptocurrencies. We test the haven properties of cryptocurrencies for African stocks and commodity markets in a pandemic implementing the frequency domain spillover index. Data spans 11th August 2015 to 28th August 2020 at a daily frequency. Findings show weak interconnectedness across markets suggesting non-contagion risk and that cryptocurrency are safe havens for African stocks and commodity indices from the medium-term. We find the major transmitters of spillover effects across markets to be time-varying and heterogeneous. This study provides significant risk diversification benefits for policymakers and investors in the African financial markets.

How to Cite

Kumah, S. P., Adjei Abbam, D., Armah, R., & Appiah-Kubi, E. (2021). African financial markets in a storm: Cryptocurrency safe havens during the COVID-19 pandemic. Journal of Research in Emerging Markets, 3(2), 60–70.
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Article Details


Cryptocurrency, African Stocks, Commodities, Safe Havens, Spillover Effects



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