Turkish lira's real value hits six-year high

The Consumer Price Index (CPI)-based real effective exchange rate index increased by 2.66 points to 107.76 in October, reaching its highest level since February 2020. Meanwhile, the index reading for September was revised from 105.45 to 105.10.

The Domestic Producer Price Index (D-PPI)-based real effective exchange rate index also rose by 1.67 points to 102.90. Compared with the same period last year, the Turkish lira's real value increased by 7.79 points on a CPI basis and 2.58 points on a D-PPI basis. According to CBRT data, the U.S. dollar appreciated by an average of 1.63% against the Turkish lira in October, while the euro declined by 1.07%. During the same period, consumer prices rose by 2.58%, providing one of the main drivers behind the increase in the real effective exchange rate index.