Turkish Lira's Real Effective Value Declines in June Amid Rising Inflation

The Central Bank of the Republic of Turkey reported that the Real Effective Exchange Rate (REK) index fell to 104.90 in June, down 0.80 points from May's 105.70, marking a continuation of the decline that began in April. Over the same month the Turkish lira lost 1.81% against the US dollar and 0.42% against the euro, while monthly consumer price inflation (CPI) rose 0.99% and producer‑price inflation (YI‑UFE) increased 1.80%.

In the financial markets, state‑issued debt securities (DİBS) delivered the highest monthly real return in June, with a 1.60% gain when adjusted for YI‑UFE and a 2.42% gain when adjusted for CPI. Deposits also posted modest real returns, while the BIST 100 index achieved the strongest annual real performance, delivering an 8.70% real gain based on YI‑UFE and 7.16% based on CPI. By contrast, gold recorded a real loss, and both the dollar and euro exhibited real declines under both inflation measures.