Value of the Turkish Lira: Central Bank's Contradictory Calculations

The value of the Turkish Lira is a subject of debate, with the Central Bank's calculations yielding conflicting results. On one hand, the real effective exchange rate calculations suggest that the Turkish Lira is undervalued, while on the other hand, different price indices used in the calculations lead to different conclusions. So, how should the value of the Turkish Lira be calculated? Which price index gives the most accurate result? To answer these questions, we will examine the real effective exchange rate calculations and price indices of the Turkish Lira.