Estimating covariance between exchange rate devaluation and oil price volatility during COVID-19

The economies of West African Monetary Zone (WAMZ) countries have recorded a long trend currency devaluation and hiking instability in oil prices. We estimated the covariance volatilities global prices caused by COVID-19 outbreak on WAMZ from January 30 to December 30, 2020. BEKK model was for analysis. results generalized autoregressive conditional heteroskedasticity (GARCH) show that all variance equation coefficients, are significant, suggesting strong volatility transmission spillovers between price shocks economic performance WAMZ. estimates obtained both current lagged gross domestic product (GDP) equations relatively similar. Consequently, weakly responded arising fluctuations international prices, inflation rate, excess outbreak. instabilities had decelerating consequences output growth economies. effects shock negative study. A 1 percent devaluation-oil pandemic resulted rates 1.3 percent, 1.12 1.1 1.09 Nigeria, Sierra Leone, Ghana, Gambia, respectively.