The real value of the Turkish Lira fell once again in June

According to data released by the Central Bank of the Republic of Türkiye (TCMB), the real effective value of the Turkish Lira showed a decline in June. The real effective exchange rate (REER) index, calculated based on the Consumer Price Index (CPI), fell by 1.19 points in June compared to May, dropping to 69.97.

According to the provisional figures from the TCMB, a similar picture emerged in the REER index based on the Domestic Producer Price Index (D-PPI). This index fell by 0.98 points in June compared to the previous month, settling at the 92.71 level.

The Central Bank evaluated the reason for the decline in the REER index. The statement noted that in June, the CPI increased by 1.37 percent, while the D-PPI rose by 2.46 percent. However, it was emphasized that the increases in the nominal exchange rate were more dominant than the rises in the price indices. Specifically, it was stated that the US dollar gained an average of 1.69 percent and the euro gained 3.68 percent against the Turkish Lira.

The statement included the following: “When the components affecting the CPI-based REER index are examined, the US dollar and the euro gained an average of 1.69 percent and 3.68 percent, respectively, against the Turkish Lira compared to the previous month. While the CPI increased by 1.37 percent compared to the previous month, the D-PPI increased by 2.46 percent. As a result, while Turkey's CPI contributed to the increase in the index, changes in the World CPI Basket and the Nominal Exchange Rate Basket had a decreasing effect on the index.”

News Source: 12punto