Turkmenistan Manat (TMT), the official currency of Turkmenistan. This currency came into play after the Soviet Union was shut down, helping Turkmenistan stand on its own economically.

The TMT isn’t just important in local markets, it also has a big impact on Turkmenistan’s trade with other countries and tourism. In this article, we’ll give you the lowdown on the history of the TMT, its different denominations, how it affects the economy, and what’s going on with the exchange rates. 

What is Turkmenistan Manat (TMT)?

The Turkmenistan Manat (TMT) is Turkmenistan’s national currency. It symbol is m, and the official ISO code is TMT.  Introduced in 1993, it replaced the Soviet ruble to serve as Turkmenistan’s monetary system.

The name “Manate” comes from the word “Moneta,” The manat is used across the country for all transactions, from daily purchases to large-scale business deals.

In international trade, Turkmenistan natural gas exports are the key driver of the nation’s wealth. Since 2015, the official exchange rate is set at 3.5 TMT to the U.S. dollar.

However, the black market exchange rate was 18 TMT to the greenback in 2019, and weakened further to 25 TMT to the dollar in 2020.

Turkmenistan previously used the Russian rubble and adopted its own currency in November 2003, following the dissolution of the Soviet Union.

Turkmenistan redenominated its currency in January 2009 at a rate of 5,000-to-1.

History of Turkmenistan Manat (TMT)

The Turkmenistan Manat has a relatively young history, reflective of the country’s journey toward economic sovereignty. The TMT was introduced to replace the Soviet ruble at an initial exchange rate of 1 manat = 500 rubles. In January 2009, a redenomination was implemented to stabilize the currency. The new manat replaced the old manat at a ratio of 1 new manat = 5,000 old manat. Over the years, the Turkmen government has controlled the TMT tightly, maintaining fixed exchange rates to ensure stability despite inflationary pressures.

Denominations of Turkmenistan Manat (TMT)

The TMT has a range of coins and banknotes for different transaction needs, they include

Coins: 1, 2, 5, 10, 20, and 50 tenge (subunits of the manat) 1 and 2 manat

The coins often come with designs of symbols of Turkmen culture, such as national monuments and traditional patterns.

Banknotes: 1, 5, 10, 20, 50, 100, and 500 manat

The banknotes come with designs of symbols of prominent Turkmen leaders, architectural landmarks, and cultural motifs. For example, the 500-manat note prominently features President Gurbanguly Berdimuhamedow, symbolizing modern Turkmen identity.

Economy of Turkmenistan Manat (TMT)

The Turkmenistan Manat plays a pivotal role in the country’s economy, which is heavily reliant on natural gas exports. Turkmenistan is one of the world’s largest natural gas producers, with significant trade ties to China, Russia, and Iran.

Key factors influencing the TMT’s stability include:

1. Natural Gas Prices: Fluctuations in global energy prices directly affect Turkmenistan’s economy and currency value.
2. Government Policies: The Turkmen government maintains a fixed exchange rate to shield the currency from international market volatility.
3. Limited Convertibility: The manat is not fully convertible, limiting its exposure to global currency speculation but also restricting flexibility for foreign investors.

Exchange Rate of Turkmenistan Manat

The exchange rate of Turkmenistan Manat is fixed because of the exchange rate policy. As of recent data, the exchange rate is:

Note: Due to exchange controls, the black market often reflects a significantly weaker manat compared to the official rate.

Factors Affecting the Exchange Rate

1. Inflation: Persistent inflation in Turkmenistan erodes the purchasing power of the manat.
2. Trade Deficits: Dependence on imported goods creates pressure on foreign currency reserves, impacting the manat’s value.
3. Energy Markets: The country’s reliance on natural gas exports ties the manat’s health to global energy demand and pricing.

Conclusion

The Turkmenistan Manat (TMT) represents Turkmenistan’s independence and its tightly managed economy. From its introduction in 1993 to its role today, it has the symbol M, while the ISO code is TMT.

The currency initially faced challenges, characterized by high inflation rates due to an influx of Soviet rubles into the country.