Sovereign bond yield and cryptocurrency returns within the frontier West African monetary zone: a dynamic contagion analysis

Akwasi Adom-Dankwa (), Francis Atsu, Emmanuel Numapau Gyamfi, Godfred Amewu and Kenneth Ofori-Boateng
Additional contact information
Akwasi Adom-Dankwa: Ghana Institute of Management and Public Administration (GIMPA)
Francis Atsu: Ghana Institute of Management and Public Administration (GIMPA)
Emmanuel Numapau Gyamfi: Ghana Institute of Management and Public Administration (GIMPA)
Godfred Amewu: University of Ghana
Kenneth Ofori-Boateng: Ghana Institute of Management and Public Administration (GIMPA)

Palgrave Communications, 2025, vol. 12, issue 1, 1-13

Abstract: Abstract This study employs wavelet analysis to examine the contagion between cryptocurrency returns and sovereign bond yields within the West African Monetary Zone (WAMZ) economies, capturing both the frequency-dependent nature of the relationship and time-varying behavior. We analyze daily data spanning 01/26/2021 to 10/07/2022, with a total observable value of 444. The study selected periods of uncertainty within financial markets, namely, the COVID-19 pandemic and the Russia–Ukraine war because there was a need to understand how securities react during such times to help investors plan accordingly. Our results show a negative correlation between sovereign bond yields and cryptocurrency returns, suggesting that investors can use these asset classes as hedge agents, diversifiers, and safe-haven instruments. These findings provide valuable insights for investors and policymakers, shedding light on the potential interdependencies and diversification benefits between these two asset classes.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41599-025-04599-0 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-04599-0

Ordering information: This journal article can be ordered from
https://www.nature.com/palcomms/about

DOI: 10.1057/s41599-025-04599-0

Access Statistics for this article

More articles in Palgrave Communications from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().