The Central Bank of the Republic of Türkiye (CBRT) reported that its real effective exchange rate index, based on consumer prices, rose to 107.76 in October. That is the highest level since February 2020. The September reading was revised down to 105.10 from 105.45.
What drove the move
The index rose for the month. The central bank attributed the increase to changes in Turkish consumer prices and to the Nominal Exchange Rate Basket. Changes in the World CPI Basket pushed the index lower.
On the producer price measure, the real effective exchange rate index rose by 1.67 points to 102.90 in October. Turkish producer prices rose 1.65 percent over the month.
Currency and inflation backdrop
The lira gained 1.63 percent against the US dollar on a monthly average basis. It lost 1.07 percent against the euro over the same period.
Turkish consumer prices rose 2.58 percent in October from a month earlier. Year on year, the lira’s real value on the consumer price basis was up 7.79 points.
Related: Turkish lira quotes: dollar near 49.57, euro near 55.70
