Big Mac Index vs. Dollar Exchange Rate: Turkey's Purchasing Power Parity Reality

Turkey's current market exchange rate of 47.50 TL shows a 17.50 TL gap compared to the Purchasing Power Parity (PPP) rate of 65 TL calculated via the Big Mac Index. This discrepancy indicates Turkey's weaker performance in international comparisons. Former Finance Minister Mahfi Eğilmez emphasized that the gap reflects more than just nominal values, impacting real purchasing power. Due to Turkey's high import dependency, energy and intermediate goods costs rise under a 65 TL rate, potentially worsening inflation. GDP figures drop from 1.658 billion USD at 47.50 TL to 1.189 billion USD at 65 TL, while per capita income falls from 18,621 USD to 13,745 USD. This highlights the costs of Turkey's diverging exchange rate policies from economic realities.

This analysis reveals how Turkey's exchange rate policies affect international purchasing power. True wealth cannot be measured solely by dollar-denominated figures.