According to provisional data released by the Central Bank of the Republic of Turkey (TCMB), the Real Effective Exchange Rate (REER) Index based on the 2003=100 scale witnessed a significant increase of 1.43 points in February 2024, reaching 58.55 on a Consumer Price Index (TÜFE) basis. This data reflects a notable uptick compared to the January 2024 level of 57.12.
Simultaneously, the Real Effective Exchange Rate Index on the Producer Price Index (Yİ-ÜFE) basis also experienced a positive trend, rising by 1.92 points from 87.20 to 89.12 during the same period.
The detailed analysis provided by the TCMB reveals that the Turkish lira’s value, concerning the TÜFE and Yİ-ÜFE bases, underwent specific changes. In comparison to the same month in the previous year, the TÜFE-based value decreased by 0.19 points, while the Yİ-ÜFE-based value experienced a more pronounced decline of 5.26 points.
These developments in the Real Effective Exchange Rate Index serve as valuable insights into the dynamics of the Turkish economy. The increase in both TÜFE and Yİ-ÜFE-based indices indicates a potential strengthening of the Turkish lira against a basket of major currencies, signifying positive economic momentum.
Economists and financial analysts are likely to scrutinize these figures, delving into the contributing factors behind the surge and assessing the broader implications for inflation, trade balances, and overall economic stability.
As of March 5, 2024, the updated information emphasizes the importance of staying informed about economic indicators for businesses, investors, and policymakers. The Real Effective Exchange Rate Index, being a crucial measure of a country’s competitiveness, continues to be a focal point for those navigating the complexities of the global financial landscape.
source: aa.com.tr/ prepared by Melisa Beğiç