Azerbaijani Manat (AZN)
The Azerbaijani Manat was redenominated in 2006 and is issued by the Central Bank of Azerbaijan. As a hydrocarbon-driven economy, the manat was devalued twice in 2015 when oil prices collapsed.
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A short history of the Azerbaijani Manat
The manat was the name Azerbaijanis gave to the Soviet ruble, so when independence came the new currency simply took the old everyday word. A first manat appeared in 1992 and became the sole legal tender in 1994; on 1 January 2006 it was redenominated at 5,000 old manats to one new manat, with redesigned notes that gave the currency its current, distinctly European look.
For its first decade the new manat was pegged to the US dollar at a fixed level while Caspian oil fields developed and the Baku–Tbilisi–Ceyhan pipeline opened the route to Mediterranean markets. Oil made Azerbaijan wealthy fast: the State Oil Fund (SOFAZ) was created in 1999 to save the windfall, and Baku filled with construction cranes.
The 2014–2015 oil-price crash broke the peg. The central bank devalued the manat in two sharp steps during 2015, then moved to a heavily managed float centered on the dollar. The regime has held since, backed by the oil fund's reserves — though the 2020 war over Nagorno-Karabakh and post-war reconstruction spending have kept fiscal demands high.
What moves the AZN exchange rate
The manat is one of the most managed floats in the world: the central bank sets the tone, and oil sets the tone for the central bank.
- Oil and gas prices: crude and gas exports are the state's revenue base, so world energy prices drive the manat's fundamentals
- SOFAZ and the budget: how much oil money flows from the state fund into government spending shapes the supply of dollars in the market
- Central Bank policy: the managed float is defended with interventions and reserves, and the dollar remains the operational anchor
- Turkey and Russia links: trade, investment and millions of regional travelers tie the manat's surroundings to the lira and the ruble
The Azerbaijani Manat in practice
Baku feels card-first: contactless payments work in taxis, restaurants and shops, and the city's transport card handles the metro. Ride-hailing apps and delivery services take card payments too. Outside the capital, cash matters more, and small markets want manats. The manat is practically unconvertible abroad — exchange money on arrival and convert any leftovers before leaving the country.
Azerbaijan sits in the middle of several money flows at once: it receives investment and transit fees, sends remittances to Georgian and Turkish partners, and hosts large seasonal traffic from Russia, Turkey, Iran and the Gulf. Businesses dealing with Azerbaijan should assume dollar invoicing for large contracts and plan for local regulations on conversion. Travelers will find Baku straightforward and reasonably priced by European standards, with the manat's stability making budgeting easy.
Popular Azerbaijani Manat conversions
USD/AZN is the anchor pair and the rate every local contract ultimately references. EUR/AZN and GBP/AZN serve European business and visitors, while TRY/AZN is a busy pair for Turkish trade and tourism, and RUB/AZN tracks the heavy traffic between Baku and Russia.
Frequently asked questions
What happened to the manat in 2015?
Falling oil prices made the dollar peg unsustainable, and the central bank devalued the manat in two large steps during 2015 before adopting a heavily managed float. The regime, backed by state oil fund reserves, has held since.
Is the Azerbaijani manat pegged to the dollar?
It was, at a fixed level, from 2006 until the 2015 devaluations. Today it is a managed float centered on the dollar — the rate moves little, but it is policy rather than a formal peg.
Can I use Azerbaijani manats outside Azerbaijan?
Practically no. Manats are almost never stocked by foreign exchange desks. Convert on arrival and change any remaining cash at a bank or licensed office before you leave.
Page updated: 2026-11-01