REAL EFFECTIVE EXCHANGE RATE REBOUNDS

The Consumer Price Index (CPI)based real effective exchange rate (REER) increased by 10.4% from 47.90 to 52.89 in January, as compared to December 2021, according to the Central Bank. The December CPIbased REER continues to hit historic lows. The Domestic Producer Price Index (D -PPI)-based REER also rose from 66.09 to 72.38 points in January, month over month. The CPI (developing countries-based) REER dropped from 39.11 to 43.47 in January, while CPI (developed countries-based) REER was up from 54.48 to 59.82 compared to December. The increase in the REER means TRY appreciation.