TMT - Turkmenistani Manat

Turkmenistani Manat overview

The Turkmenistani Manat is divided into 100 tenge, with both coins and banknotes widely used in daily transactions. Over the years, the currency has become a key element of the nation's financial identity, reflecting its efforts to establish a stable and self-sufficient economy.

The currency's name, "Manat," is derived from the Russian word "moneta," meaning "coin," a nod to the shared linguistic heritage of the region. The Central Bank of Turkmenistan is responsible for issuing and managing the Turkmenistani Manat (TMT).

The History of the Turkmenistani Manat

The Turkmenistani Manat was first introduced on November 1, 1993, replacing the Soviet ruble. At the time, the exchange rate was set at 1 Manat = 500 Rubles, marking a significant milestone in establishing Turkmenistan’s independent currency. However, this transition was not without challenges, as inflation surged dramatically in the years that followed, causing the Manat to lose value and severely impacting the nation’s economy.

To address these issues, a major currency reform was implemented on January 1, 2009. The old Manat was replaced by a new version at a conversion rate of 5,000 old Manat to 1 new Manat. This reform aimed to curb inflation and stabilize the national economy. While the reform succeeded in bringing more stability to the currency, the value of the Manat has continued to be influenced by both domestic and international economic and political factors.

The name "Manat" derives from the Persian word "munāt" and the Russian word "монета" (moneta), both meaning "coin." This term also shares ties with the currencies of other former Soviet nations, such as Azerbaijan and Turkey. The choice of the name reflects not only the creation of a new monetary unit but also a nod to the shared cultural and historical connections among countries in the region.

Turkmenistani Manat TMT denominations

Turkmenistani Manat coins

In 1993, alongside the introduction of the Manat, Turkmenistan issued coins in denominations ofL

• 1 tenge

• 5 tenge

• 10 tenge

• 20 tenge

• 50 tenge

With 1 Manat equals 100 tenge, these coins were made from copper-plated and nickel-plated steel and were primarily used for daily transactions.

However, the metal value of these coins soon exceeded their face value, causing difficulties in their use and circulation. As a result, in 1999, Turkmenistan introduced higher-denomination coins, including 500 and 1,000 Manat coins.

Turkmenistani Manat banknotes

The first series of Turkmenistani Manat banknotes was issued in 1993, with denominations of:

• 1 Manat

• 5 Manat

• 10 Manat

• 20 Manat

• 50 Manat

• 100 Manat

• 500 Manat

With the above banknotes, the Turkmenistani Manat fully replaced the Soviet ruble. These banknotes featured important historical figures, including portraits of Saparmurat Niyazov, the first president of Turkmenistan after independence.

In 2005, a new series of banknotes was introduced with higher denominations, including 1,000, 5,000, and 10,000 Manat. However, following the currency reform in 2009, a fresh series of banknotes was issued with denominations of 1, 5, 10, 20, 50, 100, and 500 Manat.

Currency Reform of 2009

Faced with rising inflation, Turkmenistan undertook a significant currency reform in 2009. During this reform, the old Manat was replaced with the new Manat at a conversion rate of 5,000 old Manat = 1 new Manat. This was a pivotal move to address hyperinflation and restore public confidence in the national currency.

The new banknotes and coins were redesigned to reflect the country's achievements and symbols, such as the Independence Tower and the map of Turkmenistan.

Additionally, in 2010, Turkmenistan introduced a new series of coins in denominations of 1, 2, 5, 10, 20, and 50 tenge. These coins were minted using various materials, such as nickel-plated steel and brass. Unlike earlier designs that featured presidential portraits, the new coins showcased national symbols, including the Independence Tower and historical figures of Turkmenistan.

Exchange Rates and Volatility of the Turkmenistani Manat

Before April 2009, the official exchange rate of the Turkmenistani Manat was 1 USD = 1.04 manat. However, between April 2009 and January 2015, this rate changed to 1 USD = 2.85 manat. Since 2015, the official exchange rate has remained stable at 1 USD = 3.5 manat.

On the black market, however, the manat's value has experienced significant fluctuations. For instance, in 2019, the black market exchange rate reached as high as 40–41 manat per USD, and by 2021, it had exceeded 30 manat per USD.

These disparities highlight the economic instability in Turkmenistan and the stark contrast between official and actual market rates. The Turkmen government continues to enforce strict exchange rate controls and prohibits free currency exchange, which has fueled the growth of a robust black market.

Since its introduction in 1993, the Turkmenistani Manat has undergone various phases of development and reform. Despite challenges such as inflation and exchange rate volatility, the manat remains a crucial pillar of the nation's economy.