Mahfi Eğilmez analyzes Turkish Lira purchasing power via Big Mac Index

Economist Mahfi Eğilmez has analyzed the discrepancy between the nominal exchange rate of the Turkish Lira and its actual purchasing power using The Economist’s Big Mac Index. Based on data from late July 2026, Eğilmez noted that while the market exchange rate stood at approximately 47.50 TL per US dollar, the purchasing power parity (PPP) suggests a rate of roughly 65 TL.

According to the analysis, a Big Mac in Turkey costs 325 TL. At the market rate of 47.50 TL, the sandwich costs $6.84, which is approximately 37% more expensive than the global average of $5.00. This gap indicates that the Turkish Lira may not fully reflect its true purchasing power in the current market.

Eğilmez cautioned that the 65 TL figure should not be viewed as a definitive target or the absolute real value of the currency, as exchange rates are influenced by complex factors including interest rate differentials, risk premiums, capital movements, and central bank interventions. He also warned that a shift toward the PPP rate could increase the costs of imported energy and intermediate goods, potentially placing further pressure on inflation. Furthermore, the analysis suggested that using the PPP rate would result in lower reported figures for Turkey's GDP and per capita income compared to nominal market rates.