How do people in countries with very high inflation make big purchases (house, car etc.)?

Question

Thinking Argentina or Turkey in the recent years – if the local inflation is so severe that the price of grocery in the morning vs evening (on the same day) is different, how do people make large purchases like a house or a car? How is the price determined and who would provide the long term financing?

In: Economics

Answer 1

Mortgages are denominated in stable currencies. For example, OTP Group, a large lender and a banking giant in Eastern Europe used Swiss Francs for mortgages. Of course, lenders were royally screwed if their local currencies (in which they were getting their salaries) tanked.