"If we buy something from them, we will use their money, if they buy something from us, they will use our currency," he said, ahead of a trip by Turkish Prime Minister Binali Yildirim to Russia for meetings on Tuesday.

Erdogan -- who previously said discussions were underway with Moscow, Beijing and Tehran on the issue -- added that instructions related to this proposal had been given to the central bank.

Erdogan repeated a call for Turks to convert the euros, dollars and other foreign currency "under their pillows" into Turkish lira during a speech in the central city of Kayseri.

"Our Turkish lira is blessed," he told a cheering, flag-waving crowd after opening a museum in the city named after his predecessor and long-time friend Abdullah Gul.

Ankara hopes such demands will help the lira win back the losses it has suffered over the past few months since a failed coup in July when a rogue military faction tried to oust Erdogan from power.