The real effective exchange rate has risen! The CPI-based index climbed to 107.76.

Turkey’s CPI-based real effective exchange rate index rose 2.66 points in October to 107.76 from the prior month, according to Central Bank of Turkey data. The producer-price-based index also increased, reaching 102.90. The move signals a stronger real external value for the lira after accounting for relative consumer and producer inflation. Policymakers and investors watch the gauge for competitiveness and pass-through pressures. Next focus is whether the trend persists in November data and how it interacts with inflation and the central bank’s policy stance.