OTC market during COVID-19 pandemic and impact on its further development

¹ Institute of Technology and Business in České Budějovice, School of Expertness and Valuation, Okružní 517/10, 370 01 České Budějovice, Czech Republic
² University of Žilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics, Univerzitná 1, 010 26 Žilina, Slovakia

^* Corresponding author: kuceraj@mail.vstecb.cz

Abstract

Research background: The onset of the COVID-19 pandemic strongly affected the development of the volume of trade on the OTC market. The volume was below its normal level due to the uncertainty and fear in the society.

Purpose of the article: The objective of the paper was to explain the differences between the period before the pandemic, during the pandemic, and to determine the predictions of further development until the year 2025

Methods: Using the method of neural networks, the prediction of the closing exchange rate until 2025 was determined based on the data from the past years, according to which the RM index value will be higher in December this year, with a subsequent slight decrease and fluctuations.

Findings & Value added: The results showed that the volume of trades was lower in the past compared to the period just before the pandemic, i.e. the year 2020, when the RM index was clearly highest. Investors should postpone investments until the value of the RM index is stable and trading on the OTC market is advantageous again. However, if they are willing to risk, investments can be made, although the return on investment will be unreasonably long.