In this paper, the status of devaluation realized in general economic policies to decrease current account deficit and increase exports in terms of increasing or not decreasing current account deficit is defined and used as the “Devaluation Paradox.” In this context, in this paper, the effects of devaluation, inflation, unemployment, and current account deficit variables on national currency in foreign-dependent economies have been investigated. For this purpose, changes that took place before and after devaluation have been compared. The change in the value of the Turkish Lira and its relation to inflation in the COVID-19 process have been evaluated with Consumer Price Index (CPI) and Producer Price Index (PPI) data. In addition, it has been aimed to reveal the relationship of national currency value with import and outflow of foreign currency. Within the scope of Turkey’s example, based on the effects experienced in the COVID-19 process, the changes in the national currency, increases in the general level of prices and transformation in unemployment have been evaluated. As a result, it has been tried to demonstrate the negative effects of foreign dependency on production and consumption, considering it an experience from which lessons should be taken regarding the global economic crisis process resulting from the pandemic. This paper aimed to reach optimal recommendations for determining economic policies, which need to be revised.
