The official currency of Turkey and Northern Cyprus is the lira. One lira is equivalent to 100 kuruş. Besides using this currency as a medium of exchange, you can use a Visa or a Mastercard. You may also use forward contracting to exchange your money if you wish.
Money changers in Turkey
Money changers in Turkey will have to record the identities of their clients under new rules. The change is being made after the lira hit a new low this week. Previously, they were only required to ask for personal details if the transaction totalled $3,000. Many Turks have been buying foreign currencies as a hedge against the weak lira and rampant inflation. The latest figures show that inflation reached 20% in October. As of September 1, foreign exchange deposits held by locals stood at $232.7 billion.
If you have a bank account in Turkey, you can transfer money through the mid-market exchange rate. This is often a better deal than the traditional exchange rate. Plus, it’s convenient. It’s important to know that there are no hidden fees with this option.
Travel money cards in Turkey
Using a travel money card to make purchases in Turkey is a great alternative to cash, and it can also be a great way to avoid incurring foreign transaction fees. A travel card also offers better security than cash. The card gives you access to your money wherever you are. You can use it to pay for your hotel stays, excursions, and other expenses.
Before traveling to Turkey, you should find out which cards are accepted there. You can use credit or debit cards issued by Visa and MasterCard. Debit cards are great if you plan to use ATMs as they waive international ATM fees. A credit card gives you access to a credit line, but if you don’t pay off your account each month, your purchases will be more expensive.
Visa and Mastercard in Turkey
If you are planning to use your credit or debit card while in Turkey, you can use either Visa or Mastercard. Both cards allow you to withdraw money from ATMs and waive international ATM fees. However, you should avoid using American Express or Diners cards as these may incur high fees. Instead, use a local currency such as the Turkish Lira, as it is much more valuable than euros or dollars.
It is best to exchange your spending money before you go to Turkey, because the exchange rates at home are not as good as those in Turkey. To make sure you get a fair rate, familiarize yourself with a mid-market exchange rate. Also, be sure to get a credit card with a PIN code, in case you need to use it for emergencies.
Forward contracting in Turkey
Forward contracting allows businesses to spread the risk of fluctuating currency rates. By agreeing to buy or sell currency at a future date, businesses can plan and budget more effectively. Additionally, they can take advantage of advantageous exchange rates. Let’s look at some examples of how forward contracts can help businesses.
The first type of forward contract involves exchanging one currency for another. Traders may do this by buying or selling the currency with a known price. Buying and selling the currency in advance allows the trader to make a profit from fluctuations in the exchange rate. In exchange for exchanging a currency, a business will receive the amount that is specified in the forward contract.
Cash in Turkey
While you can use your credit or debit card in Turkey, cash is still preferred. If you plan to use your card in Turkey, you should check with your bank to avoid incurring any fees. You can also use cash machines (called ‘bankamatik’ in Turkish), which are convenient and fast ways to withdraw Lira. It is important to note, however, that cash machines often charge a small fee on your withdrawal.
Cash is preferred by local merchants. Traveler’s checks are often not accepted by local merchants. Also, banks and exchange offices charge high commissions if you want to cash out your check. The best place to exchange your traveler’s checks is at the post office. Many hotels will accept them, but their exchange rates aren’t favorable. In addition, cash can be used to tip.