[can16358p]

> while locally produced goods and services should remain more or less unchanged.

This is not true for Turkish Lira because EVERYTHING is dependent on foreign currencies at some point. For example local agricultural goods shouldn't be affected, but all the machines in production line are imported, all their servicing equipment are imported. If one simply goes unofficial (e.g. Finding someone to service their machines totally in Turkey), even iron is based on foreign currencies as almost everything is either imported or owned by a foreign company (as the government sold everything to non-Turkish entities). Fuel is also imported and is directly correlated with foreign currencies. At the end of the day, everything, even local goods, is tied to foreign currencies.

[Scoundreller]

> For example local agricultural goods shouldn't be affected

Why not? Unless they’re incapable of being exported

[pas]

Sure, but the added value is local, which helps exports.

[can16358p]

Yup, it helps with exports but it simply can't outweigh the losses from devaluation and foreign dependency.

[pas]

It's not a one time thing. It's a convergent process.

It provides advantage as long as the currency is in that deprecated state. Basically the same work will cost less in the depreciated currency. This causes demand for that work, which causes appreciation of the currency.