TL's Real Value Increased in January: With a Figure of 102.17

TL's Real Effective Exchange Rate is on the Rise

According to the latest data released by the Central Bank of the Republic of Turkey (CBRT), the Consumer Price Index (CPI) based real effective exchange rate rose to 102.17 in January 2023.

New Base Year and Its Effects

The Turkish Statistical Institute (TUIK) updated the base year for CPI calculations to 2025. This update allows for a more accurate calculation of real effective exchange rates.

Changes in the REK Index

In January, the CPI-based Real Effective Exchange Rate (REK) index increased by 3.16 points compared to the previous month, reaching a value of 102.17. The Producer Price Index (PPI) based REK rose by 0.96 points, reaching 99.95.

Why Did It Increase?

This increase in the REK index is primarily attributed to the fact that the rise in CPI was greater than the increase in the nominal exchange rate. This situation indicates that the value of the Turkish Lira has increased in international markets.