The real exchange rate index fell 5.53 percent in April compared to March, based on the CPI. Accordingly, TL has reached its lowest level in the past 20 months.
In addition to health, the economy also suffered in the fight against the corona virus. The fight against the virus, at the economic level of senior executives in Turkey, seems to be overcoming this difficult time.
Issued by the Central Bank and Turkey, its trading price levels that changes 68.88 points based on April 2020 based on country price levels, real effective exchange rate consumer price index (CPI) fell after. The decline this month reached 5.53 percent. The Turkish lira was at its lowest since September 2018, when the index currency shock crisis occurred. According to the CBRT statement, the real effective exchange rate based on domestic producer prices also fell to 75.88.
The real stock market index fell 5.53 percent in April compared to March, based on consumer prices. The real effective index based on developing countries decreased from 59.67 points to 56.09 points. The real effective index based on industrialized countries fell from 82.70 points to 78.53 points. The 1-month decline in the real effective exchange rate based on developing countries was 6.08 percent, and the loss of the real effective index based on developed countries was recorded at 5.05 percent.
9.5 percent lost since early 2020
Since January 1, 2020, the real effective exchange rate index based on the CPI has lost 9.47 percent. The real effective exchange rate index was highest in December 2007 at 127.72 and lowest in September 2018 at 62.51.
The real effective exchange rate index, the ratio of the price level in the Turkish foreign trade to the countries where the price level is calculated as the weighted geometric mean. The equation observes the decline in the real effective exchange rate that the Turkish lira depreciated in real terms, in other words, the price of Turkish goods in relation to foreign goods has decreased. The change in the index is monitored based on the central bank’s reactions to the impact of changes in the Turkish lira on inflation.