REAL EFFECTIVE EXCHANGE RATE REBOUNDS

The Consumer Price Index (CPI)-based real effective exchange rate (REER) increased by 0.2% from 53.92 to 54.01 in March, as compared to February, according to the Central Bank. The CPIbased REER, which hit a historic low of 48.10 in December 2021, has shown an

upward trend for the first three months of this year. The Domestic Producer Price Index (D-PPI) based REER also rose from 76.13 to 78.65 points in March, month over month. The CPI (developing countries-based) REER was slightly up from 44.00 to 44.06, while the CPI (developed countries-based) REER increased from 61.60 to 61.71 in March, compared to the previous month. The increase in the REER means TRY appreciation.