If you have been looking at a currency chart for the Azerbaijan manat to dollar lately, you might think your internet connection has frozen. The line is flat. It is perfectly, eerily still. While the Japanese Yen swings like a pendulum and the Euro bounces on every word from the ECB, the manat sits at exactly 1.70 AZN to 1 USD.
It’s been this way since 2017.
Honestly, it is one of the most stable exchange rates in the world, but that stability isn't "natural" in the way most people think about markets. It is the result of a deliberate, iron-fisted peg maintained by the Central Bank of Azerbaijan (CBAR). If you’re traveling to Baku or looking to invest, understanding why this rate hasn't moved a fraction of a cent in years is more important than checking the daily ticker.
The Ghost of 2015: Why the Peg Exists
To understand the current state of the Azerbaijan manat to dollar, you have to look back at the trauma of 2015.
Before that year, the manat was actually stronger than the dollar. One manat would buy you roughly $1.27. Then, global oil prices tanked. Since Azerbaijan relies on oil and gas for about 90% of its export revenues, the floor fell out from under the economy.
The Central Bank tried to fight it. They burned through billions in foreign reserves to keep the currency propped up. It didn't work. In February 2015, they devalued the manat by about 25%. People panicked. Then, in December of that same year, they gave up on the "crawling peg" and let the currency float. It plummeted again.
By the time the dust settled, the manat had lost half its value. People who had dollar-denominated loans saw their debt double overnight. Savings were wiped out. That collective national memory is why the government today is so obsessed with the 1.70 peg. It represents social stability, not just economic policy.
The $65 Barrel: How the Azerbaijan Manat to Dollar Rate Stays Fixed
You might wonder: how can they keep it at 1.70 if oil prices are always changing?
Basically, the Azerbaijani government uses the State Oil Fund (SOFAZ) as a massive shock absorber. For the 2026 budget, the government has set a conservative base price for oil at $65 per barrel. Even though prices fluctuate, as long as they stay near or above that mark, the Central Bank has enough "ammo" to soak up any excess manat and keep the supply of dollars steady.
- SOFAZ Transfers: The oil fund transfers billions of manats to the state budget every year.
- Currency Auctions: The Central Bank holds auctions where it sells dollars to local banks. They sell just enough to keep the rate at 1.70.
- The Non-Oil Push: Economy Minister Mikayil Jabbarov has been vocal about shifting the weight. The goal for 2026 is for the non-oil sector to grow by 5%, which would theoretically make the manat less "greasy"—meaning less dependent on oil slicks.
Is a Devaluation Coming?
This is the question everyone in Baku whispers about.
If you look at the 2026 draft budget, Finance Minister Sahil Babayev has noted that the country’s public debt is incredibly low—around 19.5% of GDP. This gives them a lot of "room" to protect the currency. However, ING Group analysts have pointed out a stark reality: every $1 drop in the price of oil can cost Azerbaijan $300 million in export revenue.
If oil stays high, the 1.70 rate is safe. If oil crashes toward $40 and stays there for a year? That is when the 1.70 peg becomes a liability. But for now, the CBAR is sitting on enough reserves to fight the market for a long, long time.
Azerbaijan Manat to Dollar: Practical Tips for Travelers and Investors
If you are coming to Azerbaijan, don't expect to use your credit card everywhere. While Baku is a modern "mini-Dubai," once you head toward the Caucasus mountains or the mud volcanoes in Qobustan, cash is king.
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- Skip the Airport Exchange: The rates at Heydar Aliyev International Airport are almost always worse. Wait until you get into the city.
- Banks vs. Exchange Booths: Most dedicated exchange booths have disappeared. You'll likely need to go into a branch of International Bank of Azerbaijan or PASHA Bank. Bring your passport; they will ask for it.
- ATM Fees: Most ATMs in Baku charge a flat fee for foreign cards. Look for ABB (International Bank) machines, which are generally the most reliable for Western Visa and Mastercard users.
- No Black Market: Unlike some neighboring countries, there isn't a significant "street rate" that differs from the official rate. If someone offers you a "special deal" on the Azerbaijan manat to dollar on a street corner, it’s a scam. Plain and simple.
The Reality of 2026 and Beyond
The manat is a managed creature. It doesn't breathe like the Euro or the Pound.
Looking ahead through 2026, the government’s priority is rebuilding the liberated territories, an effort that will cost billions of manats. To keep that spending from triggering inflation, they need a stable exchange rate. They are effectively trading "market freedom" for "price predictability."
For the average person, this means the Azerbaijan manat to dollar rate is likely to remain at 1.70 for the foreseeable future, barring a catastrophic global energy collapse. It is a boring line on a graph, and in the world of finance, boring is usually a luxury.
Actionable Next Steps:
- Check the Oil Buffer: If you are planning a large transaction in Azerbaijan, keep an eye on Brent Crude prices. If they stay above $60, the 1.70 rate is almost guaranteed to hold.
- Diversify Cash: If you are a resident, keeping a portion of savings in USD is still a common "safety" tactic, despite the current stability of the manat.
- Monitor CBAR Statements: Watch for any language regarding "transitioning to a floating exchange rate." The CBAR mentions this periodically as a long-term goal, though they rarely set a date. Any shift in this rhetoric is the first sign of a coming move.