Last seen in 2021: The value of the TL is at a 4-year high!

The Turkish Lira reached a peak in December that was last seen in 2021. According to data from the Central Bank of the Republic of Turkey (TCMB), the CPI-based real effective exchange rate reached the 67.12 level.

In November, the real effective exchange rate was at 67.02. During this period, the D-PPI-based real effective exchange rate index decreased by 0.23 points, falling from 96.88 to 96.65.

The value of the Turkish Lira increased by 11.59 points on a CPI basis and 9.96 points on a D-PPI basis compared to the same month last year. With December's figures, the index showing the real value of the TL reached its highest level since February 2021.

WHAT IS THE REAL EFFECTIVE EXCHANGE RATE?

The real effective exchange rate reflects changes in the purchasing power of the TL. An increase in the real effective exchange rate indicates that the TL has gained value and that the price of Turkish goods in terms of foreign goods has increased. A decrease in the rate indicates that the price in terms of foreign goods has decreased.