06 September, 2020
Real effective exchange rate index fell to historic low of 62.2 in September
The real effective exchange rate index (CPI based) fell by 159 basis points to 62.21 in September.
According to provisional data released by the Turkish Central Bank, the real effective exchange rate index (2003=100, CPI based) fell by 159 basis points to 62.21 compared with the previous month. The index was at 63.80 in August.
The real effective exchange rate index (D-PPI based) also fell by 26 basis points, from 72.55 to 72.29, in the same period. Compared with September 2019, the value of the Turkish lira decreased by 1475 basis points based on the CPI, and 1133 basis points based on the Domestic Producer Price Index (D-PPI).
The nominal effective exchange rate is the weighted value of the Turkish Lira against a basket of currencies of countries which account for a significant portion of Turkey’s foreign trade. Weights are determined using bilateral trade flows. The real effective exchange rate is calculated by removing relative price effects from the nominal effective exchange rate.