Pandemic increases, net exchange reserve decreases

Stating that she determined the presence of a statistically significant co-integration relation between Covid-19 and net exchange reserves in Turkey at a long-term in one of her studies, Assoc. Prof. Dr. Gülgün Çiğdem said: “With this study, it was determined empirically that the net exchange reserve is the cause of the number of cases, the number of cumulative cases and the rate of infection in the short term. According to my study, there is a relation between the change in reserves and the pandemic.”

Assoc. Prof. Dr. Gülgün Çiğdem gave the following information about her work published in Journal of Business, Economics and Finance (JBEF): “It is empirically determined with the study that the reason for the increase in COVID-19 data is the lack of “sufficient” resources to prevent mass unemployment and bankruptcies caused by preventing the spread of pandemic, identifying and treating cases, and promoting isolation and social distance for protection purposes in the pandemic process. According to the results of the analysis, 1 percent increase in the rate of infection reduces the net foreign currency reserve by 719.9 percent. In other words, a decrease in the net exchange reserve brings about an increase in the rate of infection.”

“WORKS TO BE CARRIED ARE IMPORTANT”

Assoc. Prof. Dr. Çiğdem stated: “New data to be announced and future studies to be carried out will be important for the pandemic, which has not been brought under control yet and which there are concerns that the second wave may be experienced.”