Which currency for Turkey?

beverley1471

Hi,

I am going on holiday to Turkey for the first time in June, I was wondering if anyone has any advise which is the best currency to take? I have been advised against taking the local currency and instead to go for either euros or take British currency as the locals prefer this apparently.

I will be staying in a all inclusive hotel but wanted to take some money for day trips and the odd extra. Any advise appreciated!!

NFH

The answer is none of those options. Do not change cash between currencies; instead use cards for purchases and cash withdrawals. An electronic form of payment is inherently cheaper than changing banknotes because extraterritorial cash is expensive to handle. When you use a card, Visa or MasterCard obtains a wholesale interbank rate and no money crosses borders. GBP is paid between UK bank accounts and the foreign currency is paid between bank accounts within the foreign country. When you change cash, either in the UK or abroad, one currency will always be extraterritorial, i.e. outside its home country. If you change cash in the UK, the foreign cash will be extraterritorial, or if you change your cash abroad, the GBP will be extraterritorial. Physical cash is inherently expensive to handle, extraterritorial cash even more so.

In the wholesale banknote trading markets, cash is consequently traded at a premium or discount compared to electronic funds, and the premium or discount depends on several factors. For example the physical state of the banknotes is relevant; in Russia and other parts of Eastern Europe a pristine state is expected. The denomination is also relevant because smaller denominations are more expensive to transport. Another factor affecting some currencies is the issuer of a banknote; for example there are multiple issuers of GBP and HKD banknotes, and Scottish banknotes have a lower wholesale value than Bank of England banknotes. Added to these wholesale costs are the retail costs incurred by bureaux de change, such as employing staff, operating premises in high footfall locations and the potential movement of the wholesale interbank rate while a bureau de change holds the cash. Forget taking cash between countries unless you want to pay unnecessarily for these many costs through a worse exchange rate.

Although Visa and MasterCard obtain a wholesale interbank rate, many UK card issuers subsequently add a percentage fee (often up to 3%) for non-GBP transactions. Given that the card issuer does not partake in the foreign exchange element of the transaction, any such fee is not for foreign exchange but a fee for nothing, feasible because many consumers are less sensitive to or observant of fees when the transaction currency and billing currency are different. You can avoid such fees by using one of the top cards for overseas spending, e.g. Halifax Clarity.

Gloomendoom

OP you will need to take at least a tenner each in sterling to pay for your entry visa when you land.

~Chameleon~

Are debit/credit cards widely accepted in Turkey or would it better to pay with cash? We will be staying in Hisaronu if that helps. I was planning to take a small amount of Lira and Sterling in cash then either pay Visa debit or withdraw cash once in the resort.

gibson123

I have a holiday home in Turkey and here is my quick guide:

ALWAYS USE LIRA for small purchases - yes the locals like you to use other currencies, this is because they can then decide the exchange rate and then change your money at the local exchange shop for a small profit. The locals do not tend to rip you off, but will use the likes of Thomas Cook published rates, so at the moment this is 2.86, whilst in the PTT (turkish post office) you will get 3 lira to the pound. In a place where wages are low this can make a huge difference to wages and profits.

SO FOR CONVENIENCE OR YOU'RE RUBBISH AT MATHS, YOU MAY WANT TO USE YOUR OWN CURRENCY BUT REALISE YOU ARE PAYING A SMALL PREMIUM FOR DOING SO.

If you do use lira, get it in the resort. Before you go, find out your transaction charge from your bank for your debit card, and then withdraw in fairly large amounts - I do 600 lira at a time. (about £200)

In restaurants and bars, you can set up a tab and pay at the end of the night by credit card - this is convenient, safe and cheap ( warning, do not do this if you are likely to forget how many drinks you have had and check your bills). Once again check your rate for spending abroad.

Turkey is a lovely country I hope you enjoy your holiday.

zzzLazyDaisy

The exchange rate is always better in Turkey than uk. It is worth getting a small amount of lira for any oddments you might need when you first arrive (say £30). Then either take sterling and change it into lira as you go along, or withdraw cash from one of the atms. If you are going all-inc you won't need a lot of money.

EDIT - just to say definitely don't bother getting euros - Hisaranu is predominantly British tourists and so it is geared up for sterling and lira.

You might also want to consider booking some day trips in the town and getting out and about to see the real Turkey (Hisaranu is a bit like Blackpool with sun... fun, but definitely there for the tourists!)

~Chameleon~

Very useful replies, thanks very much

PompeyPete

zzzLazyDaisy wrote: »

Hisaranu is a bit like Blackpool with sun... fun, but definitely there for the tourists!

I didn't realise that Blackpool was 450 metres above sea level (lol)!

The first time I got a dolmus up the hill from Fethiye I couldn't believe what Hisaronu looked like. Amongst those glorious surroundings it certainly looks a tad out of place.

I never tasted the nightlife. Fethiye's more to my liking.