The Impact of the COVID-19 on the International Financial Market

Abstract

In early 2020, a rampant coronavirus posed a global health threat, endangering lives and economies. The pandemic struck a severe blow to the world's financial markets, exacerbating the vulnerabilities inherent in the interconnected global economy. Economic globalization facilitated swift cross-border transmission of financial risks. Beyond 2021, recurring waves of the pandemic continued to reshape the financial landscape. The ensuing dangers had varying impacts on global trade, currency and interest rate markets, and stocks, as outlined in this article. However, experts generally agree that while anomalies and short-term volatility may arise, they are unlikely to trigger widespread financial collapse. To mitigate potential issues, governments should strategically employ monetary and fiscal policies. These measures can include coordinated macroeconomic regulation to aid business resumption and stability reinforcement for national currencies, such as the RMB. These actions aim to support overall financial market recovery. In conclusion, the year 2020 marked the onset of a global pandemic that endangered lives and disrupted economies worldwide. The ensuing financial repercussions were amplified by the interconnectedness of the global economic system. Although subsequent years witnessed recurrent pandemic challenges, experts believe that while risks are real, they aren't expected to culminate in systemic financial crises. Governments are advised to implement well-calibrated monetary and fiscal strategies to navigate these challenges, fostering business recovery and safeguarding currency stability for the ultimate revival of national financial markets.