İSTANBUL (AA) – The Turkish lira (TL) experienced a modest depreciation in its real value in May, as the consumer price index (CPI)-based real effective exchange rate (REER) fell to 71.11, according to provisional data released by the Central Bank of the Republic of Türkiye (TCMB).
The REER index, based on CPI and calculated using a 2003=100 base, decreased by 1.05 points compared to the previous month, down from 72.16 in April 2025.
During the same period, the producer price index (PPI)-based REER also saw a decline of 0.36 points, falling from 93.45 to 93.09.
On a year-over-year basis, the real value of the Turkish lira increased by 4.76 points in CPI-based terms, while it declined by 1.55 points in PPI-based terms.
The real effective exchange rate reflects the TL’s value against the currencies of Türkiye’s main trading partners, adjusted for relative inflation rates. A drop in the index suggests a depreciation in the real value of the lira, making Turkish goods more competitive in international markets, but also indicating reduced purchasing power abroad.
Source: Bloomberght/ Prepared by: İlayda Gök