On January 1, 2005, the Turkish Central Bank lopped six zeros off a currency that saw phenomenal inflation in the past decade or so. But those were the old days. With a national economic growth rate rivaling that of China's, Turkey's economy is stronger than it's ever been. Meanwhile, those millionaire banknotes of yesteryear have been replaced with the New Turkish Lira, or Yeni Türk Liras? (YTL). Banknotes come in denominations of 1, 5, 10, 20, 50, and 100 YTL, while coins, called the New Kurus, or Yeni Kurus (YKr), come in 1, 5, 10, 25, and 50 kurus pieces (1YTL = 100YKr). There is also a 1YTL coin. As of this writing, US$1 = 1.35YTL; conversely, 1YTL = 74¢. Prices quoted in U.S. dollars in this book are based on this rate of exchange.
Until about 2 years ago, local prices were frequently quoted in U.S. dollars. But the weakness in the dollar has prompted a shift to the euro, which has resulted, for Americans at least, in a remarkable loss of value. Hotel rooms previously costing US$80 per night now cost 80€, or US$99, with no commensurate upgrade in services.
Note: Since most hotels in Turkey list prices in euros, this guide will do the same; the dollar/euro is exchanged in this book based on a rate of US$1 = 0.82€, or conversely, 1€ = US$1.22. The British pound, where applicable, is converted at a rate of £1 = US$1.77 (or US$1 = 56p).
Although I have tried to be as accurate as possible in quoting prices in this guide, please be aware that there are a number of things working against me. Obviously, the fluctuation of exchange rates plays an enormous role. But equally capricious is the erratic nature of on-the-spot price quotes and market demand. Recent shocks in petroleum prices have also resulted in titanic increases in the cost of transportation in Turkey. Finally, don't be surprised if prices change.
ATMs -- For years, the easiest way to get money away from home has been from an ATM. Unfortunately, a recent innovation by U.S.-based banks has been to charge a commission of around 3% on withdrawals in addition to the 4YTL ($3) transaction fee. On principle, I'll probably just carry around cash, but for those of you willing to succumb to endless, creative bank fees, all cities and major tourist destinations in Turkey have bank machines on the Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks. Among the most reliable of the local banks are Akbank, Türk Is Bankasi, Garanti Bankasi, Yapi Kredi Bankasi, and Ziraat Bankasi. Ask whether you need a new personal identification number (PIN), as most ATMs in Turkey accept numbered passwords only, and some limit their input to four digits. Also, be aware that the ATMs are often fickle or empty, so always carry around alternatives in the form of cash or traveler's checks for emergencies.
Traveler's Checks -- In Turkey, as in many other European countries, local merchants are loathe to accept traveler's checks, as banks charge large fees to cash them out. Banks tend to charge high commissions or hide the commission in lower rates, as do the exchange offices around town. Hotels are most amenable to exchanging your traveler's checks, but hotel exchange rates are notoriously unfavorable. What's that saying? "You gotta spend money to spend money." Or something like that.
Credit Cards -- Credit cards are another safe way to carry money. Be sure to let the bank holding your credit card know that you will be using the card abroad; this will save you the unexpected inconvenience of having your charge denied -- a more frequent occurrence now that banks have become more proactive in combating credit card theft. Be aware that bank merchants routinely add 6% to 8% onto the price of an item paid for with plastic, but recently, these institutions have begun itemizing this fee as a separate charge on your statement. Check with your credit card provider regarding its policies on overseas purchases to make sure that if you are renting a car, you won't be surprised to be shelling out a $45 commission to the credit card merchant to use its card. Keep in mind that added fees may be offset by the competitive rates of exchange used by the issuing bank, and often worth the convenience. You can also withdraw cash advances from your credit card at any bank, though check with your credit card provider before you go, because some have cash-advance limits as low as $500 per month. Remember, however, that you'll start paying hefty interest on the advance the moment you receive the cash, and you won't receive frequent-flier miles for a cash advance taken on an airline credit card.
