REAL EFFECTIVE EXCHANGE RATE HITS A HISTORIC LOW

The Consumer Price Index (CPI)based real effective exchange rate (RATE) fell from 54.13 to 47.82 in December, compared to the previous month, according to the Central Bank. The CPI-based REER saw its lowest level since 1994 when the data was first recorded. The CPI (developing countries-based) REER dropped from 44.43 to 38.85 in December, while CPI (developed countries-based) REER was down from 61.30 to 54.64 compared to November. The Domestic Producer Price Index (D -PPI)-based REER decreased from 72.21 to 67.69 in December monthly. The decline in REER demonstrates TRY devalu

ation in real terms and a decrease in prices of Turkish goods as compared to foreign goods.