The answer to your particular question is Yes, you can use both of the currencies in Istanbul. I would strongly advise you against it. Unless you don't really care on how much are you going to spend. read more
You can use USD and EUR in most places but convert some TLs to be on the safe side. Do not convert at the airport, there is a hefty cut. There are exchange spots all around the city, especially near touristic areas. read more
Lonely Planet has a practical section on money costs in Istanbul: US dollars and euros are easily changed at exchange bureaux. They are also often accepted as payment without being changed. Rates are similar whichever bureau you go to, with the possible exception of those in the tourist precinct of Sultanahmet. read more
Sep 8, 2011, 4:40 PM If you are going to change them, use the exchange shops around the Grand Bazaar that charge no commission. read more