What effects did the 1926 revaluation of the lira have on Italian workers and exports?

The 1926 revaluation of the lira was a politically motivated decision that resulted in the negative consequences typically associated with an overvalued currency.12

For Italian workers and the broader economy, the effects were severe:

• Impact on Exports: Industries that relied heavily on foreign markets—specifically those producing textiles, food, and vehicles—experienced a sharp decline as their goods became less competitive abroad.12
• Impact on Workers: The policy led to a rise in unemployment. Furthermore, workers faced downward pressure on their livelihoods, as wages were either frozen or reduced during this period.12

While the revaluation caused widespread economic strain, industries focused on domestic markets, such as steel, electricity, and chemicals, saw expansion, partly due to the benefit of cheaper raw material imports.12