Real Effective Exchange Rate (REER)
CPI-based Real Effective Exchange Rate — the lira’s real value against the currencies of its main trading partners, adjusted for inflation differences. Published monthly by the CBRT.
The full historical series extends back to January 1994 (389 records). Hover over the chart to see period values. Source: CBRT EVDS.
What Does the Real Effective Exchange Rate Tell Us?
REER measures the lira’s true (real) value by adjusting the nominal exchange rate for the difference between domestic and foreign inflation. A rising index shows the lira appreciating in real terms (exports becoming more expensive), a falling one that it is depreciating in real terms (competitiveness increasing). 100 is the reference-year level.
Why Is It Important?
REER is the most common gauge of foreign-trade competitiveness and of whether the lira is appreciating. A low REER favours exporters, a high REER favours imports/consumption; the central bank and investors watch it closely.