The real effective exchange rate index decreased by 1.05 points to 52.84 on the basis of CPI last month.
According to the provisional data released by the Central Bank of the Republic of Turkey (CBRT), the real effective exchange rate index decreased by 1.05 points to 52.84 in August compared to the previous month on the basis of CPI. The index was at 53.89 in July.
The real effective exchange rate was measured as 52.07 in January. In December 2021, it dropped to a record low of 48.10.
In this period, the real effective exchange rate index on D-PPI basis decreased by 1.07 points from 84.45 to 83.38.
While the value of the Turkish lira decreased by 9.33 points on CPI basis in August compared to the same month of 2021, it increased by 3.95 points on D-PPI basis.
According to the basket consisting of the currencies of the countries that have a significant share in Turkey’s foreign trade, the average value of the Turkish Lira weighted using bilateral trade flows and the nominal effective exchange rate are calculated. The real effective exchange rate (REK) is obtained by removing the relative price effects from the nominal effective exchange rate.
REK creates three different sub-indices, adjusted for CPI, PPI and unit labor costs. The CBRT is based on CPI-based REK within the scope of the inflation target.