Turkmenistan is a Central Asian country known for its vast deserts, rich cultural heritage, and growing economy. If you’re planning to visit or do business in Turkmenistan, understanding the local currency is crucial. The country uses a unique and distinct currency that you need to familiarize yourself with to make financial transactions easier. In this topic, we’ll explore Turkmenistan’s currency, how it operates, and other useful information about the country’s monetary system.
The Currency of Turkmenistan
The official currency of Turkmenistan is the Turkmen manat (TMT). It is abbreviated as ‘manat’ and is the only currency used for day-to-day transactions in the country. The manat is subdivided into 100 tenge, with smaller denominations available in both coins and banknotes.
Turkmenistan has a relatively controlled monetary system, with the manat not being widely exchanged internationally. The currency is pegged to the US dollar, although the rate can fluctuate due to domestic economic factors.
Historical Background of the Turkmen Manat
The Turkmen manat was first introduced in 1993, replacing the Soviet ruble when Turkmenistan gained independence following the dissolution of the Soviet Union. This marked the beginning of Turkmenistan’s transition toward a separate national currency that would be controlled by the country’s central bank.
The manat has undergone a number of changes and devaluations over the years, especially as the country has experienced fluctuations in oil and gas prices, which are major contributors to the national economy. The central bank has taken measures to stabilize the currency and maintain a controlled exchange rate, but the value of the manat remains susceptible to changes in the global economy.
Currency Denominations: Coins and Banknotes
The Turkmen manat is available in both coins and banknotes, with denominations designed to meet the needs of everyday transactions.
Coins
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1 tenge
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2 tenge
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5 tenge
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10 tenge
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20 tenge
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50 tenge
The coin denominations in Turkmenistan are generally used for small purchases, such as snacks or public transportation. Coins are common for daily use, although they are not always in circulation in large quantities.
Banknotes
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1 manat
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5 manat
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10 manat
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20 manat
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50 manat
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100 manat
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500 manat
Banknotes in Turkmenistan are used for more substantial transactions. Larger denominations like the 100 and 500 manat notes are typically used for business or high-value purchases. The 1, 5, and 10 manat bills are often seen in everyday transactions.
Turkmen Manat and Its Peg to the US Dollar
The Turkmen manat has been pegged to the US dollar in recent years, a move designed to stabilize the currency and mitigate inflationary pressures. While the official exchange rate is relatively stable, the manat has often traded at a different rate on the black market.
The government has worked to maintain the peg to the US dollar to maintain the value of the manat and to control inflation. However, due to the country’s economic reliance on exports like oil and gas, the value of the manat can still fluctuate depending on global commodity prices.
Currency Exchange in Turkmenistan
Currency exchange in Turkmenistan can be a bit tricky, especially for visitors from abroad. The Turkmen manat is not widely available outside of the country, meaning that travelers may need to exchange their foreign currency upon arrival.
Where to Exchange Currency
Currency exchange services are available at a number of locations within Turkmenistan, including:
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Banks: Banks in Turkmenistan offer currency exchange services, and they are often the best option for exchanging foreign currencies for manat. Most banks accept major international currencies like US dollars, euros, and Russian rubles.
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Exchange offices: There are also private exchange offices in larger cities like Ashgabat, the capital. However, rates at exchange offices can vary, and they may charge additional fees.
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ATMs: International debit and credit cards can be used at ATMs in Turkmenistan, although card payments are not as widely accepted as cash. If you are using your card, ensure that your bank offers international transactions.
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Hotels: Some larger hotels may offer currency exchange, but this is usually at a less favorable rate compared to banks or exchange offices.
How to Access Money in Turkmenistan
If you’re traveling to Turkmenistan, it is a good idea to carry both cash and a debit or credit card. However, cash is still the preferred payment method in most places. Here are a few tips to help you manage your money:
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Bring US Dollars or Euros: If you’re coming from outside Central Asia, it’s easiest to bring US dollars or euros with you. These are the most commonly accepted foreign currencies in Turkmenistan and can be easily exchanged at banks and exchange offices.
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Prepare for Cash Transactions: Credit and debit cards are not always accepted in smaller businesses or rural areas. It’s recommended to carry a sufficient amount of manat for your daily expenses.
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ATMs for Cash Withdrawals: Most major banks in Turkmenistan have ATMs that dispense local currency. However, you may face withdrawal fees depending on your bank’s policies.
Inflation and the Manat’s Value
Inflation has been a concern in Turkmenistan, which has sometimes affected the value of the manat. While the government has attempted to control inflation through various measures, price increases for goods and services are common, especially for items that are imported.
In the past, there have been instances where the manat has undergone devaluation, and the country’s central bank has occasionally imposed limits on the exchange of foreign currency. Travelers should be mindful of these fluctuations and consider exchanging money in advance when possible.
Tourism and the Turkmen Manat
For tourists visiting Turkmenistan, understanding the local currency and being prepared to pay in manat is essential. While the country offers unique attractions, including historical landmarks like the ancient city of Merv and the iconic Darvaza gas crater, tourism infrastructure can be limited in some areas.
Here are some tips for tourists:
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Currency is King: Most places, especially outside major cities like Ashgabat, will only accept manat for payment. Having local currency on hand is essential for sightseeing, transportation, and dining.
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Avoid Black Market Exchanges: While it may be tempting to exchange money outside of official channels, the black market for currency exchange can offer unfavorable rates and may be illegal. Stick to official banks and exchange offices for safety.
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Manage Your Spending: Since the manat is pegged to the dollar, it’s important to keep track of exchange rates to avoid losing value during currency conversions. You may also want to set a budget to account for fluctuations in the cost of living and inflation in Turkmenistan.
The currency of Turkmenistan, the Turkmen manat (TMT), is the primary medium of exchange within the country. The manat is subdivided into 100 tenge and is available in both coins and banknotes. While the manat is pegged to the US dollar, exchange rates can fluctuate, so travelers should be aware of the local financial environment. For most tourists and visitors, understanding how to obtain, exchange, and use the manat will ensure a smooth and successful experience in Turkmenistan. Whether you are visiting for business or leisure, always be prepared with local currency and be aware of the best methods for managing your finances in the country.