I just cannot, for the life of me, understand how you make a profit by it.
In: Economics
Lend me 1000000 Turkish Liras, I’ll pay you back next year.
But Turkish Lira is dropping in value like a rock, so when I pay you back, actually I will be paying you much less than I borrowed. And the difference is my profit.
Same thing works with any financial asset you expect to drop in value. You borrow, sell, and buy back cheaper when it’s time to return the asset.
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