Real value of TL reached its highest level after the election

The Central Bank of the Republic of Turkey published the real effective exchange rate for January. The CPI-based real effective exchange rate increased to 56.95. Thus, the real value of the TL saw its highest level since May. The Central Bank of the Republic of Turkey (CBRT) published the real effective exchange rate data for January. Accordingly, the CPI-based real effective exchange rate was 56.95. The real effective exchange rate in December 2023 was 55.29. The PPI-based exchange rate index increased by 0.6 points to 86.53 during this period. It was 85.93 before. The nominal effective exchange rate is calculated with the average value of the Turkish Lira weighted using bilateral trade flows according to the basket consisting of the currencies of countries that have a significant share in Turkey's foreign trade. The real effective exchange rate (REK) is reached by eliminating relative price effects from the nominal effective exchange rate. REK is adjusted with one of the CPI, PPI and unit labor costs to create three different sub-indices. The CBRT takes CPI-based REK as the basis within the scope of inflation target.