Turkey is not part of the European Union so they have never formally adopted the euro. However, Turkey has close economic ties with Europe, and some shops and restaurants will happily accept euros (and British pounds) as payment.
Lira are preferred over euros
Despite the acceptance of euros, you'll find it easier and more cost-effective to spend Turkish lira in Turkey.
Euros are accepted in some places, but you might struggle to find merchants who will accept euros in smaller towns and cities, unlike Turkish lira which are accepted everywhere. This won't be a problem if you're travelling to Ankara, Istanbul or one of the regions bordering Greece or Bulgaria, but the further you travel from the big cities and tourist destinations, the less likely you are to find merchants who will accept euros.
Assuming you find a merchant who does accept euros, they will have to convert your euros to Turkish lira when you pay and this means they can set their own exchange rate which will not be in your favour. Remember, every time your money is converted from one currency to another you'll lose a bit of money due to the exchange rate so your best option is to buy Turkish lira in the first place.
The only time it makes sense to spend euros in Turkey is if you're trying to use up some leftover euros that you have lying around. Buying euros specifically to take to Turkey is a bad idea; you'll lose a bit of money when your currency is converted from British pounds to euros, and again when your currency is converted from euros to Turkish lira.
How much spending money do you need for Turkey?
The inflation rate in Turkey hit 70% in April 2022; a 20-year high that has considerably devalued the Turkish lira to the point where living costs seem relatively cheap compared to the UK. You'll have a comfortable stay if you budget around £50 per person per day, although you could budget less than this if you don't plan on eating out every day and visiting lots of expensive tourist attractions.
As you'd expect, there are variations in prices across different regions and cities in Turkey. Interestingly, prices in the capital Ankara are about 10% lower than in Turkey's largest city, Istanbul.
Prices for common products and services bought by visitors to Turkey are as follows:
| Item | Cost (₺) | Equivalent (£) |
|---|---|---|
| 3-course meal for two, mid range restaurant | 275 | 15.28 |
| McDonalds meal | 55 | 3.05 |
| Pint of beer | 35 | 1.94 |
| One-way bus ticket | 7 | 0.39 |
| Taxi price per kilometer | 5 | 0.28 |
| 1 litre of petrol | 20 | 1.11 |
| Supermarket pint of milk | 6 | 0.33 |
| Supermarket bottle of wine, mid-range | 100 | 5.56 |
Source: numbeo.com. May 2022.
How to get the best Turkish lira exchange rate
You should always reserve or buy your currency online if you want to maximise your spending money and get the best Turkish lira exchange rate.
Some travellers will tell you to wait until you arrive in Turkey before exchanging your currency, but our research has found no evidence that you'll get a better exchange rate in Turkey. In fact, the lack of competition means you could end up worse off because you'll have no option but to accept whatever deal you're offered when you get there.
Here in the UK, Turkish lira are widely stocked by all major currency suppliers so competition is strong and you can get a great exchange rate with a little shopping around.