Exchange Rate, COVID-19, and Stock Returns in Africa: Insights from Time-Frequency Domain

We examine the co-movement between exchange rate (EXR) returns and stock (STK) in Africa amid COVID-19 a time frequency domain. Therefore, we employ bi- partial wavelet multiple correlation techniques using daily data from 13 February 2013 to 6 May 2021. Our findings divulge that COVID-19’s effect does not increase intensity of relationship EXR STK but causes significant difference lead-lag two assets. find strong likelihood for high market integration African markets long run, regardless conditions. Under general conditions, South (Namibian) equities have lead/lag potential short run (intermediate term). Namibian stocks are first respond shocks before all other remaining variables intermediate term, while is last variable experience shocks. Owing recently intensified alliances markets, investors should be wary specific they include their portfolios periods ahead. Policymakers required an in-depth understanding nature ensure timely operative policy responses rolled out minimise adverse fluctuations local currencies.