The relationship between TL Value Loss and Inflation is Returning to Balance.

İstanbul Chamber of Commerce (İTO) President Şekib Avdagiç described the Turkish lira's depreciation in international markets and the Central Bank of the Republic of Turkey's (TCMB) assessment that the impact of this depreciation on inflation has weakened as an important development. This situation presents a strong signal for the rebalancing of the relationship between the exchange rate and inflation, with a decrease in exchange rate pass-through.

Avdagiç emphasized in his statement that exchange rate fluctuations do not directly affect inflation as they did before. This change stands out as a positive development for financial stability and helps reduce uncertainties in the markets. The weakening of exchange rate pass-through means that similar fluctuations will have less impact on inflation. This generally indicates a strengthening of the economic confidence environment.

Particularly in recent times, the various measures and policies taken by the Central Bank have played a significant role in minimizing the inflationary effects triggered by the depreciation of the Turkish lira. At this point, Avdagiç pointed out that market dynamics are being rebalanced, suggesting that the increasing confidence of investors and the business world will positively reflect on economic growth.

According to TÜİK data, the decrease in inflation rates is seen as a beacon of hope in economic circles. Avdagiç's statements highlight the resilience of the Turkish economy once again and reinforce the hope that currency fears can be overcome. Experts predict that with this decrease in exchange rate pass-through, the consumer price index will follow a more stable course over time.

As a result, as Şekib Avdagiç stated, the weakening of the impact of the Turkish lira's depreciation on inflation is an encouraging situation for market participants. It is expected that this process will contribute to the Turkish economy gaining momentum moving forward and will create a foundation for sustainable growth.