Turkmenistan Currency: How the Manat Works and Key Features

Turkmenistan’s currency, the manat (TMT), plays a central role in an economy heavily reliant on natural gas exports. The government strictly controls its value and circulation, shaping domestic transactions and international trade. These controls make foreign currency access difficult for businesses and individuals, influencing financial decisions and economic activity.

Denominations and Currency Symbol

The Turkmenistani manat (TMT) is issued in banknotes and coins. Banknotes come in denominations of 1, 5, 10, 20, 50, 100, and 500 manat, featuring designs that reflect the nation’s cultural and historical heritage. Coins, known as tenge, are the subunit of the manat, with 100 tenge equaling 1 manat. They are available in 1, 2, 5, 10, 20, and 50 tenge, though smaller denominations are rarely used due to inflation.

The currency symbol for the manat is “m,” placed after the numerical value (e.g., 50m). Internationally, its ISO 4217 code, TMT, is used in banking and foreign exchange.

To prevent counterfeiting, banknotes include security features such as watermarks, security threads, and color-shifting ink. Higher denominations, like the 100 and 500 manat notes, incorporate additional elements such as holograms and microprinting.

Exchange Rate Management

Turkmenistan enforces a fixed exchange rate, with the government setting an official value that often diverges from the black-market rate. The Central Bank of Turkmenistan stabilizes the manat’s value using foreign exchange reserves, preventing market forces from influencing it.

Strict currency controls limit access to foreign exchange. Banks require documentation, such as invoices or travel proof, for foreign currency purchases, and approvals can take time. Even when granted, the amount provided is often lower than requested.

The gap between the official and black-market exchange rates complicates trade and investment. Foreign companies struggle to convert profits into dollars or euros, while domestic firms face challenges purchasing imported goods. Importers often pass higher costs onto consumers, contributing to inflation.

Official vs. Unofficial Channels

State-owned banks handle foreign exchange transactions under strict regulations. Individuals and businesses must justify their need for foreign currency, and approvals are not guaranteed even with proper documentation.

Due to these restrictions, an informal currency market has emerged, where foreign cash is traded at significantly different rates. This system, though widely used, carries risks, as the government actively discourages unauthorized exchanges.

Businesses relying on imports must navigate fluctuating exchange rates. Some mitigate risks by invoicing in foreign currencies or using offshore accounts, though these methods create compliance challenges.

Limits on Currency Conversion

Strict currency conversion limits affect both individuals and businesses. Residents seeking foreign currency for travel or tuition payments face monthly caps, often turning to unofficial sources at higher rates.

For businesses, restrictions on converting manat complicate financial planning. Companies with international suppliers struggle to secure funds for cross-border payments, leading to delays and renegotiations. Some firms resort to barter-like arrangements, exchanging goods or services instead of cash.

Circulation Within the Economy

With limited foreign currency access, most domestic transactions rely on the manat. Retailers and service providers price goods in the local currency, though imported products often reflect unofficial exchange rates, making them more expensive.

Cash remains the dominant payment method, as electronic banking infrastructure is underdeveloped. Debit cards and mobile payments exist but are not widely accepted outside major cities. Government employees and pensioners receive payments in bank accounts, but withdrawal limits often cause long lines at ATMs.

Security Elements and Authentication

To maintain confidence in the manat, Turkmenistan incorporates advanced security features into its banknotes. Watermarks, security threads, and color-shifting ink help prevent counterfeiting. Higher denominations include holographic strips and microprinting.

Law enforcement monitors counterfeiting risks, and banks educate the public on identifying genuine currency. Businesses handling large cash transactions often use ultraviolet scanners to detect fraudulent bills. The government periodically updates banknote designs to enhance security.