Money Matters

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Turkey’s currency is the Turkish Lira. 1 TL = 100 kurus.

Notes: 5, 10, 20, 50, 100, 200 TL

Coins: 5k, 10k, 25k, 50k, 1TL

This is a topic that we will certainly revisit in the months prior to departure. At that time we will advise you about:

• how much spending money you may need
• how many Euros and Turkish Lira you may require.

That said, for all we know, Turkey may well be in the European Union by April 2015 and using Euros.

A Close Look at the Turkish Lira

I always like to get a really good look at a new currency before I enter the country, so that I don’t get confused about which note is which. Some currencies have very similar notes which makes it difficult for the novice, but like  Australian banknotes, the Turkish Lira comes in different coloured notes to help differentiate values.

Cash, Card or Traveller’s Cheques?

I always take a combination of cash, a Commonwealth Bank Travel Money Card, my normal eftpos card and a back up credit card for emergencies.

• Cash is good for tipping, buying coffee and shopping in a market.
• My Travel Money Card is good for larger transactions, like paying a bill in a restaurant or making purchases in an apartment store. It doesn’t incur fees for individual transactions. I can use it to withdraw cash from most ATMs worldwide.
• My eftpos card and credit card are there for emergencies only and I would use them in that order. Both, however, will incur foreign transaction fees.
• Some tourist operators, will only accept credit cards (MasterCard/VISA) or cash.

Where can I buy foreign currencies?

Buying foreign currency is very straightforward. You can

(a) ask your local bank teller to organise some foreign currency for you.  You will need to take in the usual i.d.,  fill out the requisite forms, pay in advance and pick up your cash in about 3-4 working days.

or

(b) You can buy currencies online through foreign currency traders like the Commonwealth Bank – even if you don’t bank with them.

Go to https://www.commbank.com.au/personal/travel/foreign-cash.html and follow the instructions there.

• You can order between AUD250 – AUD10,000 in any of 38 foreign currencies, including Euros and Turkish Lira.
• You don’t even have to be a Commonwealth Bank customer.
• Pay using BPAY via Netbank, or telephone banking, or by paying directly through your own financial institution.

Pre-paid Debit Card

I feel very uncomfortable travelling with large quantities of cash and so usually I take only what I’ll need for my first two days in each country. The bulk of my funds I draw from my Travel Money Card. This is a pre-paid MasterCard. At the time of writing these are the terms offered by the Commonwealth Bank:

• $15 set-up fee (which includes the card and a backup card for you or your partner)
• $0 first load
• $0 transaction fees on purchases
• choice of 13 different currencies (you can store up to six different currencies at a time on your card, including Euros and Emirati Dirham.

Advantages over cash:

• reduces stress levels incurred when carrying around great wads of cash
• purchased currency is locked in at the purchase price. Once loaded on your card, the value of your money is not affected by market fluctuations. (This of course can be a negative as well – it just pays to buy at the right time)
• running short of funds? Reload from your other accounts, using BPay.
• You can use the card in more than 35 million MasterCard locations around the world. You use it just like an eftpos card to withdraw cash from an ATM,  or to pay for purchases at the shop counter.
• You can store up to six different currencies at a time.

(c) There are other debit style cards available through travel agents, financial institutions and Australia Post. Ask around, do your research to find the best deal for you.

How much Turkish Lira will I need to take with me?

The equivalent of no more than $AUD 200 should be enough. Always ask for it in the SMALLEST possible denominations. Note that they will not send you coins.

For instance, you can purchase Turkish Lira on The Commonwealth Bank website (a transaction fee applies per currency purchased).

• At the time of writing, AUD$1 =  1.74 TL. 1 TL = 0.58 AUD.
• 150 TL will cost you AUD $108.22 (This includes an $8 transaction fee)
• 1500 TL = AUD $1012.23 (includes $10.02 fee)

Note when you buy a foreign currency you will usually get a better rate of exchange in that country.

It’s worth noting too that most souvenir shops in Istanbul will take Turkish Lira, Euros, US Dollars and Pounds Sterling.

ATMs  – are abundant in Istanbul. Turkish ATMs will take all Maestro and Cirrus bank cards with a pin number. Changing money on ATMs may be slow, but any cash dispensed will only be in TL.

Foreign Exchange Kiosks offer better rates of exchange than banks. They can be found in the main tourist areas.

Credit Cards – most businesses will accept VISA and MasterCard, but American Express is less popular because of the higher commission.

Haggling

This you can’t avoid in Istanbul’s Grand Bazaar. Haggling over the price of goods in a market is an accepted part of the shopping experience there. But don’t be intimidated.

• Most important rule of haggling? Don’t ever be pressured to buy. Be polite, smile and move on if you don’t wish to buy.
• Be aware, however, that once you step into a shop, or cross the invisible line that marks the stall’s boundaries, you can expect to engage in a contest for your tourist dollar. Some unscrupulous shopkeepers may even pressure you to buy something before you are allowed to step outside. Best advice? If you have no reason to be in a shop or mauling items at a stall, don’t!

• The contest will start with a greeting, an inquiry about your health. Return the compliment.
• This doesn’t have to be a confronting experience. If you have no intention of buying anything at that stall, move on to the next.
• If the shopkeeper follows you, ignore him. He will lose interest eventually if there are other customers around.

• So, you decide to stop and browse. You will be softened up with questions about your nationality. This piece of knowledge is important for the shopkeeper. He has a rough idea of how rich or stingy certain nationalities are. If he thinks you are a rich American he will inflate his prices. He might do the same when he learns you are an Australian. He will ask if you come from Sydney or Melbourne. If you’re from the city, he will have a friend or relative who has been there or lives there.
• Enjoy the banter. It’s part of an age old tradition to make connections with strangers in market places. A friendly customer is more likely to part with their dollar.

• Time for business? Haggling is an age old practice. It’s expected of you. Most shops and stalls will not have fixed price items, or any price tags at all.
• But don’t agree to the first offer! The shopkeeper doesn’t expect you to do so. In Egypt years ago an American friend didn’t understand this. He just kept paying whatever the opening offer was. The shopkeepers loved him.
• Then the sales pitch begins: he will focus on whatever you start pawing your hands over. It will be the best, cheapest example in the market.
• See something you like? Don’t gush over it. Curb your enthusiasm. Ask about something else in the store and focus on what you want as an afterthought. If you get good at this game, the initial offer won’t be ridiculously high.

• Only haggle over the item(s) you wish to purchase. Don’t get into the haggling game if you do not intend to purchase.
• Don’t waste the shop keeper’s time by knocking down his offers only to decide that you don’t really want the item. Things could turn nasty.

• When you are ready to buy begin by offering 50% of the initial asking price and go up incrementally from there.
• Never pay more than you are prepared to pay.
• Don’t insult the shopkeeper by making ridiculous offers – he can’t give it away! This is his livelihood. He has a family to support.
• If you don’t want the item, be firm and don’t make a counter offer.
• Once you get close to agreement, don’t quibble over a couple of lira. That insults him and doesn’t make you look too crash hot.

• When it comes to those souvenirs for friends and families, you may get a better deal by buying 6 for 20TL. Just ask. A discount will be offered.
• Part with words of thanks and a wish for his future prosperity. Feel good moment.

Still not sure about haggling? Then watch the experts show you from Monty Python’s Life of Brian

Tipping

This can be a little daunting because we aren’t used to tipping in Australia.

Best advice? Don’t throw away your small change. Keep it for tips. Avoid having a wallet full of big notes, always put aside your coins (especially 1TL coins)  for tipping. If you have a big bank note, break it down into smaller denominations as soon as possible. Keep those 1 TL coins handy.

• The general rule of thumb in Turkey – you don’t have to tip. Turks generally don’t. so don’t feel guilty if you don’t tip.
• You don’t have to tip bus drivers
• If you take a taxi, it is customary to just round up the fare to the next Lira.

However,

• It is customary to tip 5-10% of the bill in restaurants and cafes, but only if you are happy with the service.
• Airports have professional baggage handlers. If one helps you, then it’s customary to supply a 2-3TL tip.
• if a musician plays a song at your table it is gracious to slip the violinist a 5 or 10 TL note between the violin strings when he leans across the table.
• If we feel the need to tip any tour guide, then we will do so as a group, rather than individually. My shout at Troy.
• You may be asked by a tour guide to “thank” your bus driver with a tip. If he got you safely to your venue without scaring you to death then 2-3 TL might be acceptable.
• Tip toilet attendants 50K. (And remember what I said about taking your own toilet paper).

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