Concerns with using U.S. $ in Istanbul?
 

I have a family member who is convinced by the travel organizer that it is fine to use U.S. dollars in Istanbul. The visit will only be a few days. Though some may be willing to take U.S. dollars, would it be to my family member's advantage to pay in Lira or at least Euro? She's concern about getting cash from ATM. She'll be arriving in Istanbul via bus. I've had problems with my ATM card in Europe before, so I understand her concerns. What are the best options? I say get some Liras and use Euros as a fall back.

Hmmm.

Ask her if she would take Turkish Lira in change at her local CVS or Walgreen's?

I used only Lira in Turkey. And only get cash from ATM machines. I don't understand why people want to use other than currency of the country they're visiting. I don't see a difference between using Euros and US Dollars - you'll take a hit on the exchange rate on both.

Where are you getting the Euros? Do you already have them?

Of course it will be to the person's advantage to use local currency. In this case Turkish Lira. What does the travel organizer care if someone pays a premium to use USD. It's not their loss.

What is the concern with using ATMs. I use them all over Europe with no problems. Including using ATMs in many places in Western Turkey from Istanbul to Antalya.

I have to say I think it's offensive for people to use currencies other than the one of the country they're visiting, even in countries where the residents actively seek out dollars. And unless your family is a math genius or wants to use a calculator for every transaction, he/she probably isn't going to have any idea how many dollars to pay for anything and will likely get taken to the cleaners.

This question gets asked almost every week. When will people start to learn that it's a ridiculous question? Sigh!

personally do great there with my no fee capitalone.com

Visa taken widely there no foreign fees double FF miles

on EVERYTHING best deal going.

I will ATM/Exchange local scrip from big banks only

just to cover incidentals Exchange rate best there.

Money changers are the worse clip u up to 35% on small changes

AVOID! www.coimill.com for correct USD/Lira change

Europe is cratering now Greek 1 year bonds are paying 94%

today rumors of eminent default are tanking the euro now

as well as market worldwide... NO to the Euro for me

so I would stay in Dollars as much as possible

Good luck!

Well sure they can bring dollars. Then they can find a foreign exchange place. Then get totally ripped off on both the exchange rate and the outrageous fees.

They are going to Turkey. Use Turkish currency!!!

The U.S. is right next to Canada, but we don't take Canadian dollars in most places (even though they might be worth more).

coinmill.com/TRY_USD.html

$100 USD will get u 179 TRY today

But wait as long as you can to get even more...

www.otel.com best for Turkey hotel deals for me

Istanbul based use them a lot.

Why on earth would anyone use currency not issued by the country they are visiting? This seems like an insane holdover from long ago.

What kind of ATM troubles? We carry a couple of ATM cards, just in case, and a few credit cards.

Greek 1 year Bond Yield at nearly 94% now. ... analysis of Greek bond yields and predict that once the 1 year bond ... value of the bond is 500 for a 1,000 Euro 2012 ...
http://www.politics.ie/forum/europe/...ek-1-year-bond

Unless the G7 countries do something this weekend

the Euro is in major trouble...

It's been almost 20 years since I was in Istanbul (I have to fix that!). The ATM machines worked very well at that time. The price board at our hotel gave only dollar prices, starting at $25 for a single. It was a clean and comfortable place near Topkapi Gate. We got into town on the tram or in a domus. Dollars were preferred because the Turkish lira was even more unstable than the Italian lira. Merchants preferred dollars and German Marks at that time. I traveled with 1,000 of each, and brought almost all of it home. Turkey was very economical.

Maybe the "concern" about using ATM's in Europe is that there was an ATM that didn't work one time.

It has happened to me before once out of 20 plus trips to Europe.
It has happened to me here a few times here in the US where I live.

In both cases I just found another ATM.

It hasn't stopped me from using ATM's in Europe and it hasn't stopped me from using ATM's in the USA.

Hi leh,

>I have a family member who is convinced by the travel organizer that it is fine to use U.S. dollars in Istanbul. <

Has the "organizer" been to Turkey before? :)

>The visit will only be a few days.<
How many thousands of Lira in cash is she planning to spend?

May I suggest that she trade in $100 for TRY at the departure airport, so that she will have some cash on arrival? It will only cost a couple of dollars more than getting the money in Turkey.

Then she can use one of her two ATM cards to get whatever extra cash she might need.

CapitalOne doesn't charge "conversion" fees.

((I))

I was in Istanbul this March. From acceptance point of view, everyplace I have been would have taken US dollar. The rate was at least 6-10% in their favor. Turkish lira was not easy to convert into another currency so if you have lira left over, recommend converting back into Euro or US dollar before leaving Turkey. The merchants were disappointed when I used Turkish lira as it deprived them from making additional profit.

I agree... use Lira. I'm trying to find good argument points against the tour organizer's experience/belief that US dollars work well. I'm not the one going on the trip - just trying to provide good advice to my family member who is somewhat naive about getting currency when traveling.

Re: ATMs - I was only able access ATM 2x during a trip in UK, Netherlands, Germany and Belgium. It was my credit union's fault, who couldn't fix the problem while I was abroad. On another trip, I got a backup account in case the same thing happened. I needed to access cash for the apartment upon arrival. Both my cards didn't work at the German airport ATM. At such a late hour, it was hard for me to find an ATM nearby the apartment. Thankfully, the owner was really nice and let me pay the next morning.

In countries where the bastard politicians have debased their currencies more than in the USA you will find that dollars are respected and preferred. Know the official exchange rate and offer the equivalent in dollars. The merchant will get more lira for those dollars than the official rate because foreign exchange is controlled. Citizens may not be able to exchange more than a certain amount of lira for real money annually. It is marked in their passports.

The Greek millstone is getting heavy for the banks of northern European countries. The thin ice is about to crack.

Have most those who are responding been to Istanbul recently or at all? I was there last year and USD is widely accepted. All the ATM's let you get cash in Lira, Euros or USD. Hotels airport transfers, tours are all priced in Euros.

It is widely accepted in Istanbul to pay in USD, for most purchases a tourist would make. It wouldn't work on a bus or in a locals only establishment. But at a tourist restaurant, Grand Baazar, hotel, they wouldn't bat an eye if you wanted to pay in USD.

Oh, and btw, I'm not an arrogant, ignorant American. I would never consider paying in USD in France or Italy, etc.. Istanbul really is different!

Oh, my apologies. It just sounded so nutty; my father, actually out of ignorance used to tell us all the time that our US money would be good anywhere. We quit arguing with him.

I have not been to Istanbul, and again, I apologize. It's just that I've never been to any country where they didn't prefer to do business in their own currency. Turkey is obviously out of my ken.

Sure, US dollars are probably widely accepted in Istanbul, and why not? The merchants are making fabulous profits by accepting them. That doesn't mean a savvy traveler should pay in dollars.

<i>StCirq on Sep 10, 11 at 10:52pm
Sure, US dollars are probably widely accepted in Istanbul, and why not? The merchants are making fabulous profits by accepting them. That doesn't mean a savvy traveler should pay in dollars.
</i>
Even when paying in dollars you can negotiate, especially at the Grand Bazaar. Never pay the first asking price.

Of course you can negotiate (I love haggling and am good at it), but I'm pretty sure haggling in dollars and getting the price down is still going to mean you're paying more than you should be. As long as the merchant knows you've got dollars and would prefer to pay in them, he/she's got the advantage.

>>Of course you can negotiate (I love haggling and am good at it), but I'm pretty sure haggling in dollars and getting the price down is still going to mean you're paying more than you should be. As long as the merchant knows you've got dollars and would prefer to pay in them, he/she's got the advantage<<

Not how it works. I don't tell anyone the currency I'm paying in to start the negotiation. Negotiate using the currency that is listed, say 300 Lira, get it down to 200 Lira or whatever, then say you will pay in USD. Other than rounding to the nearest dollar, how is anyone paying more?

I went to Istanbul last month. The short answer is that you can pay with USD in many places. However, for day-to-day things, using Lira is probably easier.

One thing to note is that there are things that are quoted in either euro or USD. The tour guide we booked, for example, quoted prices in USD. Many of the carpet shops quoted (and charged) in euro as well.

<i>I have to say I think it's offensive for people to use currencies other than the one of the country they're visiting, even in countries where the residents actively seek out dollars. </i>

This is absolutely silly. If someone wants to be paid in USD, then it is not offensive to pay with USD.

<i>Why on earth would anyone use currency not issued by the country they are visiting? </i>

Because the currency of that country is too volatile and residents prefer to hold onto a currency with a more concrete value?

Seriously, have folks never been to Cambodia? Dollarization exists.

Hi aime,

>...USD is widely accepted.<

We recognize that. It is the premium that one has to pay for the convenience.

ira...

Not all recognize that. There were many posts to the contrary.

I have to disagree though that one has to pay for the convenience, other than rounding. Or maybe it is the rounding you're refering to? Say something is 60 Lira, which converts to $33.60, then I might lose $0.40 on that transaction. Maybe that is troublesome for some?

I'm also not advocating using only USD. Lira is the most convenient currency to use in Istanbul, obviously. But USD can very easily be used, at no great additional expense, in my experience.

My issue is so many of the posts just gave plain wrong information:

<i>Ask her if she would take Turkish Lira in change at her local CVS or Walgreen's

have to say I think it's offensive for people to use currencies other than the one of the country they're visiting, even in countries where the residents actively seek out dollars. And unless your family is a math genius or wants to use a calculator for every transaction, he/she probably isn't going to have any idea how many dollars to pay for anything and will likely get taken to the cleaners.

When will people start to learn that it's a ridiculous question? Sigh!</i>

Euros also were widely accepted in Istanbul due to the tremendous amounts of tourists.

Yes, places accepted American dollars but not every where.

The best way to take money from ATM's is to use a bank that has branches in that country.

We got the Capital One card to use abroad and their rate of exchange was not very favorable.

"I have to disagree though that one has to pay for the convenience, other than rounding."

There's the official exchange rate, but any bank has a Buy and Sell rate which differs from it. So do the merchants who take foreign currencies. You can bet that the exchange rate for the dollars isn't unfavourable for the merchants.

I live in istanbul (although currently and for another five days in Chicago). I also still work in the financial sector.

If you stay in the tourist areas and live among the tourists and buy from tourist shops and go on tours and eat at tourist restaurants, you can use any hard currency but the exchange rate will be at the mercy of the establishment which will round it to the closest ball park figure in his favor for ease of calculation.

The Turkish Lira is very stable, however there are minor fluctuations during the day together with the Dollar-Euro parities and the FX offices follow them every minute.
.
The FX offices do not charge fees or commissions. Their margin are very low. Especially the ones just below the silversmiths at the Grand bazaar have possibly one percent or so margin between buying and selling rates.

You can exchange any TL you have left at the airport banks before you depart although the price will not be as good as an FX office.

It truly makes a great deal of sense to either get TL at ATMs or change USD cash to TL at FX offices and use TL.

Regular shops and cafes and restaurants on the upscale Nisantasi district and Bosphorus villages and any and all non-touristy areas of Istanbul may accept foreign currency but will give you an exchange rate that leaves them a safety margin since the cashiers have to account to the
owners and managers, and since these venues are not in the habit of dealing in FX. They also have to account in TL for tax purposes. Those places which accept FX will be either avoiding tax or taking an FX risk.

In any case, if you are going to deal in FX or silver or gold while in Turkey, check the current prices before any deal on websites such as www.doviz.com on your i-phone, i-pad or blackberry.

I'm concerned about the OP's problems with ATMs. We have used our credit union debit cards all over Europe and in China. I can't remember a single problem. (Our friend did have a problem at an ATM at Heathrow, but he just moved to another machine and it worked fine.)

Did you call ahead of time to warn them you would be making withdrawals from abroad? Did you have more than 1 card?

Based on that advice your family member needs to do a lot of checking on any arrangements made by that travel planner - who appears to be a blithering idiot.

Using currencies other than the local one always lays you open to losing significant funds in the rate of exchange that you are given by the merchant (understandably - since they will lose when they deposit this in their bank account - never mind being a major PIA for them.

The sensible thing is to pay for whatever larger bills you can with credit cards and use you debit card (attached to your checking account) with money pulled from the ATM in any bank.

ATMs should not be a problem as long as the icons of the major ATM networks appear on the card and you have notified your bank you will be abroad. If your account is with a small local bank or credit union and not part of these networks - yes, you may have trouble - and should get one more widely accepted. Always carry a small amount of cash - $200 or $300 in case the ATMs are empty on a holiday or weekend.

<i>
nytraveler on Sep 11, 11 at 3:03pm
Using currencies other than the local one always lays you open to losing significant funds in the rate of exchange that you are given by the merchant (understandably - since they will lose when they deposit this in their bank account - never mind being a major PIA for them.
The sensible thing is to pay for whatever larger bills you can with credit cards and use you debit card (attached to your checking account) with money pulled from the ATM in any bank.</i>

If the merchant accepts dollars or euros you can get a better deal if you know the exchange rate. Everything is negotiable, especially in Turkey. The merchant won't be putting the foreign money in his bank anyway. He will be selling it on the black market.

About once a year I get a bumb charge on one of my credit cards, usually from overseas. Amex blocks them but Visa lets them through. Them I have to go through the protest process. It takes months to clean up the mess. Using credit cards in Europe is a risk.

Why do people think there is a currency black market in Turkey? The lira is fully convertible, therefore no black market.

Black markets for currency exist in countries where the currency is <b>not</b> convertible.

spaarne, there is no black market for currency in Turkey.

The TL is full and openly convertible and anyone can have a bank account in any currency.

NYTraveler is 100% right.

USA has more problems with credit cards than Europe because Europe has chips.

<i>USA has more problems with credit cards than Europe because Europe has chips.</i>

Really? Do you have evidence to support this assertion? Were credit card security such an issue in the US (where they have much greater market penetration than in Europe and where the banks are liable for fraud) wouldn't there be more pressure to introduce chips as an anti-fraud measure? Frankly, the market suggests that the US system works just fine.

<i>Everything is negotiable, especially in Turkey.</i>

Bingo...

Using credit cards anywhere is a small risk. I have had bogus charges on cards from the US - and never had it happen in Europe. One of the reasons I prefer AmEx is that they never give you any trouble in removing these charges - where Visa makes a big magilla about it.

And if you try to negotiate currency rates withlocals you will most probablyfind yourself losing your shirt.

And what black market? This isn't 1965! The lira is convertible anyplace.

"If the merchant accepts dollars or euros you can get a better deal if you know the exchange rate. Everything is negotiable, especially in Turkey. The merchant won't be putting the foreign money in his bank anyway. He will be selling it on the black market."

This isn't Bulgaria in the 1960's. If a Turkish merchant wants dollars, he just goes to the bank and changes some of his Lira. He isn't waiting for a tourist to bring hard currency.

Of course one can negotiate exchange rates as one can negotiate prices. But hey, the merchant is the professional haggler while the tourist isn't. So there might be some people on this board who are savvy like heck and come out on top, but most tourists (including me) won't.

<i>Using credit cards in Europe is a risk.</i>

My credit union's credit card security company blocks twelve locations in the States unless cleared ahead of time. CC transactions appear to be as risky in the States as in Europe.

I have never been to Cambodia.

Even if the Turkish lira is fully convertible that doesn't mean that any quantity is allowed. I really don't know the present situation but at one time the government limited the amount that a citizen could exchange in a year. That is what set up the black market. I'll bring greenback Franklins to Turkey on my next trip.