The unit of currency in Northern Cyprus is the Turkish lira (Turkye Lira; TL). Exchange rates for the new Turkish lira are subject to fluctuations due to a high inflation rate.
Since January 2008, the Republic’s unit of currency has been the euro (€), when one Cypriot pound (CY£) was exchanged at a frozen rate of €1.68.
Banks in Cyprus exchange all major currencies in cash (travellers cheques are becoming increasingly rare). Most shops and hotels in Northern Cyprus accept hard currencies such as UK pounds, US dollars and euros.