“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.
In November alone, the lira haemorrhaged more than 10 percent while it continues to reach record lows against a stronger US dollar.
The lira on Friday reached a record low of 3.58 to the dollar before making up some of the loss.
In another televised speech on Sunday, Erdogan urged owners of shopping malls to “change paying their rent in foreign currencies to TL (Turkish lira)” to prove they are “patriotic”.
He gave an example of one mall owner who told Erdogan “immediately, I will change to lira” after a brief telephone call.
The government also planned for tenders to be offered in the Turkish currency, the president said.
Erdogan later repeated his call for lower interest rates and said the government’s economic coordination committee which met on Friday for five hours agreed they should be cut.
He accused unnamed individuals of attempting to launch a putsch against the country through interest rates, the stock exchange and foreign currency movements.
Ankara slashed its growth forecast to 3.2 percent from 4.5 percent for this year as the political turbulence and terror attacks in the past year take their toll.