Turkey's Real Effective Exchange Rate Index Reached 104.90 in June 2026

The Central Bank of the Republic of Turkey (TCMB) today, July 6, 2026, released data regarding exchange rate developments over the past month. According to this report, the Real Effective Exchange Rate (REER) based on the Consumer Price Index (CPI) stood at 104.90 units in June, a decrease of 0.8 points compared to May [1][2]. This figure was recorded at 105.7 units in May.

Central Bank Report Details and Index Changes The Real Effective Exchange Rate index, calculated with the base year 2025=100, is a key tool for measuring the value of the Lira against the currency basket of Turkey's trading partners, accounting for inflationary effects. According to the Central Bank's statement, although changes in Turkey's domestic Consumer Price Index (CPI) tended to increase this index, changes in the global inflation basket and the nominal exchange rate basket had a downward effect on the final index [2][3].

Another part of the report states that the real value of the Turkish Lira has grown significantly compared to the same period last year. Based on the Consumer Price Index, the Lira's value has increased by 7.46 points compared to June of last year, indicating an improvement in the real purchasing power of the national currency over a one-year period [3].

Economic Analysis of the 104.90 Level The index being above the 100-unit level means that the Turkish Lira has strengthened in real terms compared to the base year (2025). However, the slight decrease from 105.7 to 104.90 in June suggests that the pace of domestic inflation growth has slightly moderated compared to nominal exchange rate fluctuations and global inflation, or that the nominal exchange rate moved with greater momentum [4].

Economic experts believe that maintaining the index above the 100-unit range, while strengthening the purchasing power of Turkish consumers in global markets, can be a challenge for exporters; it makes Turkish-produced goods more expensive in international markets and reduces their price competitiveness [3].

Monetary Policies and Future Outlook These data are released as the Central Bank of Turkey, under the management of Fatih Karahan, pursues strict contractionary policies to curb inflation. The benchmark interest rate is currently stabilized at 37 percent to support price stability. Analysts believe that the stability of the Real Effective Exchange Rate index in the second half of 2026 will depend heavily on the government's success in reducing consumer inflation below 30 percent and managing foreign currency inflows during the tourism season [1][4].

The Central Bank emphasized that close monitoring of the Real Effective Exchange Rate will continue to adjust monetary policies and maintain balance in the country's trade balance. It is expected that with the continuation of economic reforms under the supervision of Finance Minister Mehmet Şimşek, the fluctuations of this index will become more limited in the coming months.