TL appreciated in real terms in February
According to the provisional data released by the Central Bank of the Republic of Turkey (CBRT), the real effective exchange rate index based on 2003=100 increased 1.66 points to 58.73 in February on a CPI basis compared to The last month. The index was at 57.07 in January.
In this period, the real effective exchange rate index on the D-IPP basis increased 0.21 points, from 87.82 to 88.03.
The value of the Turkish lira increased 4.92 points on a CPI basis and 12.83 points on a D-IPP basis in February compared to the same month of the previous year.
WHAT IS THE REAL EFFECTIVE EXCHANGE RATE?
The real effective exchange rate reveals changes in the purchasing power of the Turkish lira more realistically.
The increase in the real effective exchange rate indicates that the Turkish lira has appreciated and the price of Turkish goods in terms of foreign goods has increased. The decrease in the real effective exchange rate indicates a decrease in the price of foreign goods. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
