4 ms·

>A weaker currency is better for exports. Only for exports that don't rely on imported components, because such components will get more expensive.

• dsq 4y ago
  Quite right, imports get more expensive. I guess it's only beneficial if you have most of the supply chain in-country.
  • anony999 4y ago
    Could you say that it encourages local supply chains?
    • dsq 4y ago
      I think so, given a healthy market. Sometimes fiat decisions or policies can discourage or outright prevent local supply from developing. The key is balance.
• ThinBold 4y ago
  > rely on imported components This doesn't matter. You buy wheat at $100 and sell breads at $250. You net $150 and convert that to, say, €150.