Turkish Lira’s Real Effective Exchange Rate Index Hits Highest Level Since September 2021, Boosted by Recent Gains in Inflation-Adjusted Terms
In June 2024, Turkiye’s real effective exchange rate index, adjusted for consumer price inflation (CPI), rose by 0.36 points to reach 61.90, marking the highest level for the Turkish lira in real terms since September 2021. According to provisional data released by the Central Bank of the Republic of Turkiye (CBRT), the 2003=100-based real effective exchange rate index increased by 0.36 points compared to the previous month’s 61.54 level in May 2024.
During this period, the CPI-based real effective exchange rate index also saw a 0.38-point increase, climbing from 93.92 to 94.30.
The Turkish lira’s value in CPI terms rose by 10.25 points compared to the same month last year, representing one of the strongest annual appreciations in nearly five years.
As a result, the real value of the Turkish lira has reached its highest level in nearly three years, also gaining 7.13 points in inflation-adjusted terms.
Source: AA / Prepared by Irem Yildiz