Overview

The Azerbaijani Manat (AZM) was the official currency of Azerbaijan from 1992 to 2006. It was issued by the National Bank of Azerbaijan. The Manat floated on foreign exchange markets throughout its period of use and served as the currency for the post-Soviet nation, a regional energy superpower, and a strategic Caucasus state. The currency was replaced by the New Manat (AZN) in January 2006 at a redenomination rate of 1 AZN = 5,000 AZM.

Replacement History

The Azerbaijani Manat was redenominated and replaced by the New Azerbaijani Manat (AZN) in January 2006. The redenomination reflected significant inflation and currency stabilization efforts following economic reforms. The exchange rate at replacement: 1 AZN = 5,000 AZM. The old manat notes and coins were gradually withdrawn from circulation, with a transition period for exchange.

Final Denominations (at demonetization)

Final Coins: 1, 5, 10, 20, 50 Qəpik; 1 Manat

Final Banknotes: 1, 5, 10, 20, 50, 100, 500, 1,000 Manat

Withdrawal: Completed by 2008; old currency no longer in circulation

Demonetization Context

The demonetization occurred following the successful stabilization of the Azerbaijani economy in the early 2000s. Oil revenue growth (Baku-Tbilisi-Ceyhan pipeline beginning 2006) provided confidence for the redenomination. The new manat was introduced as a symbol of renewed economic strength and monetary stability under President Ilham Aliyev.

Historical Exchange Rates

  • 1995: 1 USD = ~4,000 AZM (hyperinflation period)
  • 2000: 1 USD = ~3,900 AZM (stabilization period)
  • 2005: 1 USD = ~4,600 AZM (pre-redenomination)
  • 2006: Replaced by AZN at 1 AZN = 5,000 AZM

Economic Context at Demonetization

At the time of demonetization in 2006, Azerbaijan was experiencing:

  • Oil sector boom (Caspian Sea production)
  • GDP growth acceleration (15%+ annually)
  • Central Bank reserves accumulation
  • Currency stabilization relative to USD
  • Regional geopolitical significance elevation
  • Infrastructure development acceleration

Notable Characteristics

  • Post-Soviet transition currency: Adopted 1992 following independence; hyperinflation initial period; stabilization by late 1990s
  • Oil wealth integration: Currency tied to petroleum sector fortunes; oil revenue dependency; commodity currency characteristics
  • Caucasus geopolitics: Nagorno-Karabakh conflict context; regional tensions; geopolitical significance; strategic location
  • Russian monetary ties: Initial Russian ruble relationship; transition to market-based system; gradual independence assertion
  • Inflation history: Significant inflation during 1990s (50%+ annually at times); stabilization 2000s; redenomination inflation reflection
  • Currency collectibles: Old manat banknotes and coins now collectible; historical significance; numismatic value; historical records

Legacy

The Azerbaijani Manat (AZM) is now an obsolete currency, maintained only in historical records, numismatic collections, and academic studies of post-Soviet monetary transitions. Its replacement by the New Manat (AZN) symbolized Azerbaijan's oil-driven economic confidence and geopolitical emergence in the 2000s. No longer in use anywhere; purely historical reference.