What is the Money of Turkey? A Guide to the Turkish Lira

Turkey is a fascinating country that straddles Europe and Asia. With one foot in the modern world and one foot in the ancient, Turkey seamlessly blends old and new. From the stunning mosques and bazaars of Istanbul to the sun-soaked beaches of the Turquoise Coast, Turkey has so much to offer visitors.

One of the most common questions travelers have when planning a trip to Turkey is “what is the money of Turkey?” If you’re heading there soon you’ll want to familiarize yourself with the Turkish lira.

In this article, we’ll give you a crash course on Turkish money. You’ll learn all about the history of the lira, what the bills and coins look like, exchange rates, and tips for saving money during your trip. Let’s dive in!

A Brief History of the Turkish Lira

The Turkish lira is the official currency of Turkey and has an interesting history. It was originally introduced in 1923 after the fall of the Ottoman Empire and the founding of the modern Republic of Turkey. It replaced the Ottoman lira as the new national currency.

The lira remained relatively stable until the 1970s when inflation started to become a problem. By the 1990s and early 2000s, rampant inflation was rapidly devaluing the lira. In 2005, the New Turkish Lira was introduced, which basically knocked six zeros off the currency. So overnight, 1 new lira was worth 1 million old lira!

Since 2005, the new Turkish lira has been far more stable. While inflation has crept up at times, six zeros have remained off the currency.

In 2009, the word “new” was dropped and the currency became, once again, just the Turkish lira. So if you’re visiting Turkey today, you’ll be using the plain old lira. Just be aware that lira banknotes issued before 2005 are worthless collector’s items now!

Turkish Lira Bills and Coins

The lira is divided into 100 subunits called kuruş. The coins of Turkey are issued in denominations of 1, 5, 10, 25, and 50 kuruş and 1 lira. The 1 kuruş coins are rarely used anymore.

The banknotes come in denominations of 5, 10, 20, 50, 100, and 200 lira. Each bill features a different color scheme and portrait of Mustafa Kemal Atatürk, founder of the Republic, on the front. The backs depict various prominent Turks throughout history.

It’s easy to confuse the 5 and 50 lira notes since they are similar colors. So pay close attention to the numerals to know if you’re holding 5 or 50 lira!

Exchange Rates: What’s a Lira Worth Against Other Currencies?

If you are coming from abroad, you’ll need to exchange your native currency for Turkish lira. It helps to know the current exchange rate so you have a sense of what things cost in lira.

As of August 2022, the exchange rate is:

• 1 USD = 17.254569 TRY
• 1 EUR = 17.320118 TRY

Rates fluctuate daily though so be sure to check close to your travel dates.

Many banks and currency exchange offices in turkey will exchange foreign cash and travelers checks for lira. ATMs are also ubiquitous, and you can withdraw lira directly using your debit card.

In tourist areas, some shops and hotels may accept USD or EUR. However, you will always get the best deals paying in lira. Exchanging just enough spending money ahead of time is wise.

Tips for Saving Money in Turkey

Turkey is an affordable destination for most travelers, especially those coming from the US, Canada, Europe, and Australia. You can comfortably travel here on a mid-range budget. Backpackers can get by on even less.

That said, there are plenty of ways to enjoy Turkey’s sites and experiences on the cheap. Here are some money-saving tips:

• Opt for budget lodging like hostels, pensions, or Airbnbs over hotels. Or consider a homestay.

• Eat local street food for cheap, delicious meals.

• Stick to public transportation like trains, buses, and ferries over taxis or rental cars.

• Avoid the peak summer season if possible when prices surge. Spring and fall offer ideal weather without the crowds.

• Buy a Museum Pass which covers entry to hundreds of sites for a fraction of normal ticket prices.

• Always have small bills so you can bargain down prices at bazaars and markets.

Paying with Cards vs Cash

While credit cards are accepted at most hotels, restaurants, and shops in the main tourist centers, cash is still king in Turkey. Small businesses, taxis, buses, street vendors and more operate on a cash-only basis. So make sure to carry plenty of lira for everyday purchases.

If you do plan to use cards, Visa and MasterCard have the widest acceptance. Notify your bank before travel that you’ll be abroad so they don’t flag your charges as suspicious. And consider a chip and PIN card which is more commonly used than swipe cards in Turkey.

For big purchases, withdrawing cash from an ATM usually gives the best exchange rate and lowest fees. But again, inform your bank of your travel plans or your card may be frozen!

Fun Facts About the Turkish Lira

• The lira sign ₺ was chosen via a national contest in 2012. The design is meant to symbolize steadiness and economic growth.

• Banknotes feature portraits of Mustafa Kemal Atatürk, modern Turkey’s founder. But coins depict the sultans of the Ottoman era instead.

• Between 1995-1996, and again 1999-2004, the Turkish lira held the Guinness World Record for least valued currency due to inflation.

• Turkey has minted the world’s largest coin, weighing over 1kg and with a denomination of 1 million lira. Only 100 were produced as collectibles.

• Up until the mid-2000s currency overhaul, Turkey had the world’s highest valued banknote at 100 million lira.

The Turkish Lira’s Future

In recent years, the lira has suffered from political and economic instability. This has led to high inflation and a devalued currency. Some experts predict Turkey may redenominate the lira again by knocking off a few zeros. This would help stabilize things.

There has also been talk of Turkey abandoning the lira altogether and adopting a more stable currency like the dollar or euro. However, national pride in the lira makes this unlikely in the near term.

For now, visitors can enjoy favorable exchange rates but should closely monitor economic developments in Turkey during their trip. The lira’s future is uncertain, but hopefully Turkey’s central bank can implement effective monetary policies to restore stability to this storied currency.

Get Your Turkish Lira Hassle-Free

When you’re ready to get your lira, skip the bank and exchange houses. For fast delivery, great rates, and no fees, order through our secure website. We’ll ship your Turkish banknotes within 1-2 days or initiate an electronic transfer. Contact us today to place your lira order!