Azerbaijani manat
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| Azerbaijani manat | |
|---|---|
 | |
| Name | Manat |
| Local name | manat |
| Iso code | AZN |
| Subunit name | qapik |
| Used banknotes | 1, 5, 10, 20, 50, 100 |
| Used coins | 1, 3, 5, 10, 20, 50 qapik |
| Issuing authority | Central Bank of the Republic of Azerbaijan |
Azerbaijani manat is the currency of the Republic of Azerbaijan introduced after independence following the dissolution of the Soviet Union and later reformed in the 2000s. It serves as the legal tender across Baku, Ganja, Sumqayit and the Nakhchivan Autonomous Republic, circulating alongside coins and banknotes issued by the Central Bank of the Republic of Azerbaijan. The manat has been shaped by regional energy exports, fiscal policy, and international financial relationships with institutions such as the International Monetary Fund and the World Bank.
History
The manat's origins trace to the post-Soviet transition in the early 1990s when Azerbaijan, recovering from the Nagorno-Karabakh conflict and negotiating accords like the Alma-Ata Protocol, established a national monetary system and central banking framework inspired by models in the Baltic states and post-Yugoslav republics. Key moments include the 1992 introduction of the first manat series, later redenomination in 2006 which eliminated zeros as did reforms in countries like Turkey and Russia, and interactions with supranational actors such as the European Bank for Reconstruction and Development, the International Monetary Fund, and the Asian Development Bank. Political leaders and institutions prominent in this period include Heydar Aliyev, Ilham Aliyev, the Milli Majlis, and the Cabinet of Ministers, while economic pressures stemmed from oil and gas contracts with companies like BP and Statoil, and from infrastructure projects with firms such as SOCAR and Azerbaijan Railways.
Design and denominations
Banknote and coin designs have featured Azerbaijani landmarks and cultural figures comparable to representations seen on currencies like the pound sterling, euro, and US dollar. Portraits and motifs reference individuals and places such as Heydar Aliyev, Nizami Ganjavi, Baku Boulevard, Maiden Tower, Shirvanshah's Palace, and the Flame Towers, alongside imagery evocative of the Caspian Sea, Gobustan petroglyphs, and Karabakh carpets. The design process involved collaborations with national institutions like the Azerbaijan National Academy of Sciences, the State Museum of Azerbaijani Carpets, and international security printers similar to De La Rue and Giesecke+Devrient. Denominations currently include qapik coins and manat banknotes aligned in sequence akin to denominations used in the eurozone and Commonwealth currencies.
Issuance and monetary policy
Issuance authority rests with the Central Bank of the Republic of Azerbaijan, whose policy decisions are informed by macroeconomic indicators, fiscal revenue from Azerbaijan International Oil Company operations, and agreements with the IMF and the World Bank. Monetary policy tools resemble those used by central banks such as the Bank of England and the European Central Bank, including reserve requirements, open market operations, and policy rate adjustments to influence inflation and liquidity. The Central Bank has coordinated with ministries such as the Ministry of Finance and entities like the State Oil Fund of Azerbaijan (SOFAZ), and has navigated shocks linked to global oil prices, sanctions regimes, and regional trade partners including Turkey, Russia, Iran, and Georgia.
Exchange rate and convertibility
The manat's exchange arrangements have shifted between managed float, peg-like regimes, and more flexible exchange rate systems in response to balance-of-payments pressures and episodes comparable to currency adjustments in Argentina and Iceland. Exchange rate behavior is monitored by international markets in Baku's financial intermediaries, correspondent relationships with banks such as Citibank and Deutsche Bank, and cross-border trade with neighbors including Turkey, Russia, Iran, and Armenia. Convertibility policies affect remittances from the Azerbaijani diaspora in Turkey, Germany, Russia, and the United Kingdom, and influence foreign direct investment decisions by multinational corporations like BP, TotalEnergies, and SOCAR Trading.
Counterfeiting and security measures
Counterfeiting challenges prompted implementation of security features paralleling those on banknotes issued by the Bank of England and the European Central Bank: watermarks, holograms, security threads, microprinting, intaglio printing, and color-shifting inks. The Central Bank collaborated with law enforcement agencies such as the Ministry of Internal Affairs and international partners like INTERPOL to curb counterfeit rings potentially connected to transnational organized crime networks. Public awareness campaigns involved the Azerbaijan State News Agency (AZERTAC), the Ministry of Justice, and educational outreach in universities such as Baku State University and ADA University.
Usage and circulation
Manat circulation patterns reflect urban commerce in Baku, Ganja, and Mingachevir, retail activity in places like Taza Bazaar and Nizami Street, and tourism in Sheki, Lankaran, and Naftalan. Payment systems include point-of-sale networks provided by banks such as PASHA Bank, AccessBank, and Kapital Bank, mobile payment services supported by telecom operators like Azercell and Bakcell, and interbank clearing via the Central Bank's payment infrastructure. Currency use extends to government transactions with the Milli Mejlis and to public services in institutions like Heydar Aliyev International Airport and Baku Metro.
Commemorative and special issues
The Central Bank has issued commemorative banknotes and coins marking events and anniversaries similar to numismatic programs in other countries, honoring figures such as Nizami Ganjavi, Gara Garayev, and Heydar Aliyev, and celebrating milestones like the centenary of Azerbaijan Democratic Republic and cultural heritage themes including Karabakh carpets and maritime history tied to the Caspian Sea. Special issues have attracted collectors worldwide, with auctions and exhibitions involving institutions like the Azerbaijan National Library, the State Museum of History of Azerbaijan, and numismatic societies in Moscow, London, and Paris.
Category:Economy of Azerbaijan Category:Currencies introduced in 1992