04.02.2025 18:03
The real effective exchange rate index increased by 2.97 points to 75.44 in January 2025, based on the Consumer Price Index (CPI). The value of the Turkish lira rose by 13.99 points in CPI terms and by 10.41 points in Producer Price Index (PPI) terms compared to the same period last year. Thus, the real value of the Turkish lira in terms of CPI reached its highest level since March 2020.
According to the Consumer Price Index (CPI), the real value of the Turkish lira has reached its highest level since March 2020.
2.97 POINT INCREASE BASED ON CPI
The real effective exchange rate index increased by 2.97 points to 75.44 in January 2025 based on CPI. According to provisional data published by the Central Bank of the Republic of Turkey, the real effective exchange rate index based on 2003=100 increased by 2.97 points to 75.44 compared to the previous month. The index was at 72.47 in December 2024. During this period, the real effective exchange rate index based on PPI increased from 96.73 to 99.03, with a rise of 2.30 points.
THE TURKISH LIRA AT A 5-YEAR HIGH
The value of the Turkish lira increased by 13.99 points based on CPI and by 10.41 points based on PPI compared to the same period last year. Thus, the real value of the Turkish lira according to CPI has reached its highest level since March 2020.
STATEMENT FROM THE CENTRAL BANK
On the other hand, in a statement from the CBRT, it was stated that "the weights of the countries for the period 2021-2023 have been calculated using the mutual foreign trade and national income data of the countries, and these weights have been used in the CPI and PPI-based real effective exchange rate series for the periods following 2021." The announcement also noted that a change was made in the data source for the Iranian rial, indicating that the free market rate has started to be taken as a basis, and in this context, the real effective exchange rate series have been updated back to 2011.