What is Turkmenistan Manat (TMT)?
Turkmenistan Manat (TMT)
The Turkmenistan Manat (TMT) is subdivided into 100 tenge, which facilitates smaller transactions and pricing. The currency symbol for the manat is often represented as 'm' or 'T'. As a fiat currency, the value of the manat is not backed by a physical commodity but rather by the full faith and credit of the government of Turkmenistan.
Initially introduced at a rate of 500 manats to 1 US dollar, the currency has undergone significant fluctuations, influenced by the country's economic conditions, particularly in relation to its natural gas exports. The Central Bank of Turkmenistan is responsible for issuing the currency and regulating its supply, aiming to maintain stability in foreign exchange rates.
Since its inception, the manat has experienced devaluation, notably in 2015 when a monetary reform led to a significant adjustment of the exchange rate. As of recent years, the Turkmen government has implemented strict currency controls, affecting the availability of foreign currency and impacting the economy's overall liquidity.
In the domestic market, the manat is commonly used for everyday transactions, including purchasing goods and services. However, due to the restrictions on foreign currency exchanges, many residents resort to the black market for more favorable rates, which can create discrepancies in purchasing power.
The physical banknotes of the manat feature various national symbols and notable figures from Turkmen history, enhancing its significance as a national currency. Coins are also in circulation, although they are less commonly used in daily transactions compared to paper notes. The design and security features of the manat have been updated periodically to combat counterfeiting and to reflect the country's cultural heritage.
Overall, the Turkmenistan Manat serves as a vital component of the nation's economy, influencing trade, investment, and the daily lives of its citizens. Its stability and acceptance remain closely tied to the government’s economic policies and the country's resource wealth.