The COVID-19 crisis and its initial impacts on emerging countries: an analysis based on the exchange rate pressure index
Abstract
The objective of this article is to make an empirical characterization of the initial phase of the COVID-19 crisis, which caused greater turbulence on emerging countries, using an exchange rate pressure index that aims to measure the impacts on the exchange rate and international reserves. Conclusions: i) the most acute period of the crisis occurred in March/20, being among the three largest periods of exchange rate pressure since 2003 — behind October/08 and September/11; ii) Algeria, Brazil, Turkey, Pakistan, Nigeria, Angola and South Africa saw the most severe and persistent effects; iii) in most countries, the external adjustment occurred mainly through exchange rate devaluations — the same pattern as the 2008 crisis.
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