If you’ve been staring at a currency chart for the Azerbaijani manat to USD lately, you might think your screen is frozen. It isn't.
The rate has been sitting at exactly 1.70 AZN to 1 USD since 2017. That is nearly nine years of absolute, unwavering stillness. For anyone used to the wild swings of the Euro or the Yen, this feels weird. Kinda suspicious, even. But there is a very specific reason for it. Azerbaijan basically uses a "de facto" peg, meaning the Central Bank of Azerbaijan (CBAR) puts a massive amount of effort into keeping that number exactly where it is.
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What is really going on with the Azerbaijani manat to USD?
Most people checking the exchange rate are either planning a trip to Baku or looking at energy investments. If you are a traveler, the math is easy. One manat gets you about $0.59. One dollar gets you roughly 1.70 AZN.
Honestly, it’s one of the most stable currency pairs in the world, but that stability is expensive. The government uses its massive oil and gas wealth to "defend" the manat. They do this through the State Oil Fund (SOFAZ), which sells off US dollars in regular auctions to make sure there are enough greenbacks in the system to meet demand without the price moving.
In early 2026, the Ministry of Finance confirmed they plan to keep this 1.70 target through the rest of the year. They’ve even built their 2026 state budget around a conservative oil price of $65 per barrel to make sure they have the cash flow to keep the manat steady.
Why the 1.70 peg matters for your wallet
If you are heading to Azerbaijan, don't expect to find "better" rates at different banks. Because the rate is so tightly controlled, the difference between a bank in the city center and a kiosk at Heydar Aliyev International Airport is usually just a tiny commission fee.
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You’ve probably heard stories about the "black market" for dollars in other countries with fixed rates. In Azerbaijan, that isn't really a thing anymore. Since the big devaluations back in 2015, the Central Bank has tightened the screws. Banks are reliable, and ATMs are everywhere in Baku.
However, if you go out into the regions—places like Quba or Sheki—cash is still king. You’ll want those manats in your pocket because your Visa or Mastercard won't help much at a roadside honey stall.
The risk factor: Could the manat crash in 2026?
Nothing is ever truly "fixed" in economics. There is always a breaking point.
Right now, Azerbaijan’s economy is in a weird transition. They are trying to move away from oil, which still makes up a huge chunk of their exports. On January 16, 2026, reports showed a slight dip in the price of Azeri Light crude, which fell to around $69.29 per barrel.
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While that is still above the $65 "danger zone" the government planned for, it shows how vulnerable the Azerbaijani manat to USD rate is to global energy markets. If oil prices were to stay below $60 for a long time, the Central Bank would have to decide: keep burning through their reserves to save the peg, or let the currency drop.
- The 2015 Ghost: People in Baku still remember when the manat lost nearly half its value in a single year. It’s why many locals still keep their life savings in US dollars or Gold.
- The Cushion: The good news is that SOFAZ (the oil fund) has over $50 billion in the bank. That is a lot of "defense" money.
- Non-Oil Growth: The government is pushing hard into tourism and tech. They want the non-oil sector to be 75% of the GDP by the end of 2026.
Real-world tips for exchanging AZN and USD
If you have a stack of manats and you're heading back to the States, change them before you leave. The manat is an "exotic" currency. You will get a terrible rate trying to trade it at a Chase or Bank of America branch in the US.
In Baku, stick to the banks. Look for Pasha Bank, ABB (International Bank of Azerbaijan), or Kapital Bank. They usually have the cleanest processes and the lowest fees. You’ll need your passport for any exchange over a certain amount—usually around 500 AZN—so keep it handy.
One more thing: make sure your US dollar bills are pristine. Many exchange points in Azerbaijan are incredibly picky. If a $20 bill has a tiny tear or some ink on it, they might refuse it or give you a lower rate. It sounds annoying, but it's just the way the local market operates.
Actionable steps for managing your money
If you are dealing with Azerbaijani manat to USD transactions this year, keep these points in mind to avoid losing money on fees or shifts.
First, check the oil price. If Brent Crude or Azeri Light stays above $65, the 1.70 peg is likely safe. If it drops to $50, start worrying about a devaluation.
Second, use local ATMs instead of physical exchange booths when possible. Most Azerbaijani ATMs will give you a fair rate based on the official peg, and you'll avoid the "commission" games played by smaller booths. Just make sure your home bank doesn't charge a massive "foreign transaction fee."
Finally, if you are an expat or a business owner, don't hold too much AZN. Even though it's stable now, the history of sudden devaluations in the region means it's smarter to keep your primary reserves in USD or Euros. Use the manat for your daily expenses, but keep your "big" money in a more liquid, global currency.
Monitor the Central Bank of Azerbaijan's official announcements. They are usually very transparent about their "monetary policy corridors." If they start raising interest rates suddenly, it's often a sign they are trying to protect the manat from a looming sell-off.