ISTANBUL, September 4, 2026 — The Turkish lira’s real value declined in August as gains in the U.S. dollar and euro against the lira pushed the inflation-adjusted Real Effective Exchange Rate (REER) index lower.
According to data from the Central Bank of the Republic of Türkiye (CBRT), the Consumer Price Index (CPI)-based REER fell 1.07 points month-on-month to 105.04 in August.
The Producer Price Index (PPI)-based REER also declined during the month, falling 0.26 points to 101.35.
Dollar and euro gains pull index lower
The decline in the lira’s real value was driven partly by the appreciation of major foreign currencies against the Turkish currency.
In August, the average value of the U.S. dollar against the lira increased 1.68% from the previous month, while the euro gained 3.20%.
During the same period, Türkiye’s CPI increased 1.84%, while domestic PPI rose 2.57%.
According to the CBRT, changes in Türkiye’s inflation contributed positively to the REER, while movements in the global CPI basket and the nominal exchange-rate basket had a downward impact on the index.
The REER is widely used as an indicator of the lira’s value relative to the currencies of Türkiye’s major trading partners, adjusted for relative price levels.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök