Overview
The Azerbaijani Manat is the official currency of the Republic of Azerbaijan. It is issued and managed by the Central Bank of Azerbaijan under the Central Bank Law. The Manat floats on foreign exchange markets and, like other oil-exporting economies, is sensitive to global petroleum prices. Azerbaijan's economy is heavily dependent on oil and natural gas exports from the Caspian Sea.
Etymology & History
The word "Manat" derives from the Persian "Maan" (meaning "to weigh"), reflecting ancient Near Eastern monetary traditions where currency value was tied to precious metal weight. The modern Azerbaijani Manat was introduced in 1992 following independence from the Soviet Union, replacing the Soviet Ruble. A redenominated "new Manat" was introduced in 2006 (1 new Manat = 5,000 old Manat).
Azerbaijan's monetary history includes ancient Persian coinage, Ottoman-era currencies, Russian imperial rubles, Soviet rubles, and the modern post-independence Manat.
Timeline of Key Events
| Year | Event |
|---|---|
| 1991 | Azerbaijan declares independence from Soviet Union |
| 1992 | Manat introduced; replaces Soviet Ruble |
| 1992–1994 | First Nagorno-Karabakh War; economic instability |
| 2006 | Currency redenomination (1 new Manat = 5,000 old Manat) |
| 2020 | Second Nagorno-Karabakh War (44 days); Manat depreciates |
| 2023 | Manat stabilizes following post-war economic recovery |
Current Denominations
Coins in circulation: 1, 3, 5, 10, 20, 50 Qəpiks; 1, 5 Manat
Banknotes in circulation: 5, 10, 20, 50, 100, 200 Manat
Withdrawn: Pre-2006 notes fully withdrawn
Exchange Rate Regime
Free float with Central Bank intervention during volatility spikes, particularly during regional military conflicts.
Convertibility
- Current account: Partially convertible
- Capital account: Restricted convertibility; capital controls imposed during crises
Monetary Policy Framework
The Central Bank targets inflation and exchange rate stability, though monetary policy is frequently subordinated to fiscal pressures from oil revenues and defense spending.
Notable Characteristics
- Oil-dependent economy: Manat strength closely tied to Brent crude prices
- Regional conflict sensitivity: Manat depreciation coincided with 2020 war (depreciated ~10%)
- Unique ₼ symbol adopted 2006 (Manat-specific Unicode character)
- Sovereign wealth fund (State Oil Fund) manages petroleum revenues
- Strategic role in Eurasian economic corridor positioning