Central Bank of Azerbaijan
Azerbaijan’s central bank, responsible for monetary policy, currency issuance, payment systems, reserves, and financial-sector regulation.
Last updated October 30, 2026
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Overview
The Central Bank of Azerbaijan (CBA), formally the Central Bank of the Republic of Azerbaijan, is the country’s monetary authority and central banking institution. Headquartered in Baku, it is responsible for safeguarding price stability within its statutory powers, conducting monetary and foreign-exchange policy, issuing and managing the national currency, organizing cash circulation, overseeing payment systems, managing foreign-exchange and gold reserves, and supporting the stability of the banking system. It is a public institution rather than a conventional profit-seeking commercial bank, and it performs functions established by Azerbaijan’s Constitution and banking legislation. The modern institution was created during the restoration of Azerbaijan’s independence. A presidential decree establishing the National Bank of the Republic of Azerbaijan was issued on 11 February 1992, with 12 February observed as the institution’s establishment date. The first law governing the National Bank was adopted in August 1992, followed by parliamentary approval of its charter in December of that year. The bank received the exclusive authority to issue the national currency, a role later reinforced by the Constitution adopted in 1995. Azerbaijan’s independent monetary system developed alongside the creation of the National Bank. The Azerbaijani manat entered circulation on 15 August 1992 and became the country’s sole legal tender on 1 January 1994. A currency redenomination took effect on 1 January 2006: one new manat was exchanged for 5,000 old manats. The old and new currencies circulated in parallel during 2006, after which the new manat became the sole currency in use from 1 January 2007. The institution adopted its present name after constitutional amendments approved by referendum on 18 March 2009. Earlier names reflected different constitutional and institutional arrangements, including the Azerbaijan State Bank during the short-lived Azerbaijan Democratic Republic and the National Bank during the early post-independence period. The CBA’s responsibilities have changed as Azerbaijan’s financial regulatory architecture evolved. In 2016, authority for licensing, regulating, and supervising banks was transferred to a newly established financial-services supervisory body, while the CBA concentrated more directly on monetary and exchange-rate policy, macroeconomic and financial stability, cash circulation, and payment infrastructure. In 2019, following the liquidation of the Financial Market Supervisory Authority, substantial financial-market supervisory, licensing, consumer-protection, and related responsibilities were returned to the CBA. The bank is governed by a Management Board. Under Azerbaijan’s constitutional arrangements, members of the board are appointed by the National Parliament upon nomination by the president, while the governor and deputy governors are appointed by the president from among board members. The governor chairs the board, directs the executive structure, represents the bank, and allocates responsibilities among senior management. The CBA operates nationally through its central administration and regional offices, including offices serving the Nakhchivan Autonomous Republic, Ganja, Bilasuvar, and Guba, as well as reserve centers in Yevlakh and Sumgayit. In addition to monetary and currency responsibilities, the CBA regulates foreign-currency operations, establishes the official manat exchange rate, manages international reserves, prepares balance-of-payments and international-investment-position information, compiles consolidated external-debt statistics, and organizes centralized interbank and other licensed payment systems. Its institutional positioning is therefore that of a sovereign monetary authority and financial-infrastructure regulator, not a consumer-facing banking brand. As Azerbaijan’s financial regulatory architecture evolved, the CBA’s responsibilities changed. In 2016, powers over bank licensing, regulation, and supervision were transferred to a newly established financial-services regulator, while the CBA focused more directly on monetary and exchange-rate policy, macroeconomic and financial stability, cash circulation, and payment infrastructure. In 2019, after the Financial Market Supervisory Authority was liquidated, substantial financial-market supervision, licensing, consumer-protection, and related responsibilities returned to the CBA.
History
Azerbaijan’s central-banking history has roots in the short period of the Azerbaijan Democratic Republic, established in 1918. During that era, several forms of money circulated, including Transcaucasian bonds, Russian currency, and locally issued Baku instruments. The government decided on 7 March 1919 to establish the Azerbaijan State Bank. Its charter was approved by parliament on 16 September 1919, and the bank began operating after a formal opening on 30 September. It acted as a bank of banks, supervised credit institutions, and issued monetary units. Following the collapse of the Azerbaijan Democratic Republic in April 1920, the Azerbaijan State Bank was renamed the Azerbaijan People’s Bank. Credit institutions were nationalized and placed under its control. The institution issued banknotes and participated in financing, budgeting, and economic administration, although it later ceased ordinary lending and became primarily an instrument for budget operations. The economic-policy changes associated with the New Economic Policy led to the re-establishment of the Azerbaijan State Bank in October 1921. Azerbaijan’s integration into the Soviet monetary system ended the independent issuance role of its state bank. After the Transcaucasian federation adopted a unified monetary system in January 1923, the Azerbaijan State Bank’s emission activities stopped. In July of that year it was renamed the Azerbaijan State Agricultural Bank, and its central-banking functions were discontinued. The Baku branch of the USSR State Bank was established in 1923. From 1936 until the end of 1991, the Azerbaijani office of the USSR State Bank operated as part of the Soviet banking structure. The legal foundation for an independent Azerbaijani banking system was established during the final phase of the Soviet period. The Constitutional Law on the Grounds for Economic Independence, adopted on 25 May 1991, described a supreme emission agency responsible for monetary circulation, credit policy, settlements, foreign-exchange relations, and regulation of the banking system. After Azerbaijan regained independence, a presidential decree dated 11 February 1992 established the National Bank of the Republic of Azerbaijan. The following day is observed as the bank’s establishment date. A law governing the National Bank was adopted in August 1992, and the parliament approved its charter in December of that year. The manat was introduced on 15 August 1992 and became the sole legal tender in January 1994. The 1995 Constitution confirmed the National Bank’s exclusive right to issue and withdraw monetary units. The institution’s legal framework was subsequently revised in 1996 and again through the banking law enacted in 2004. The monetary system underwent a major technical change in 2006. Under a presidential decree issued in February 2005, Azerbaijan redenominated its currency at a rate of one new manat for 5,000 old manats. The new manat entered circulation on 1 January 2006, while both versions circulated during the transition year. From 1 January 2007, the new manat was the country’s operative currency. Constitutional amendments approved in a referendum on 18 March 2009 changed the institution’s name from the National Bank to the Central Bank of the Republic of Azerbaijan. The change reflected the terminology and constitutional organization of the country’s modern monetary authority. The CBA’s regulatory responsibilities were reorganized in the following decade. Amendments adopted in March 2016 transferred bank and insurance licensing, regulation, and supervision to a new financial-services regulator. The CBA subsequently emphasized monetary policy, exchange-rate policy, macroeconomic and financial stability, payment systems, and cash circulation. In November 2019, the Financial Market Supervisory Authority was liquidated by presidential order, and its statutory responsibilities—including financial-services licensing, regulation, supervision, and protection of investors and financial consumers—were transferred back to the Central Bank. Today, the CBA is governed by a Management Board and operates through a central administrative structure and regional offices. Its continuing mandate includes price stability, monetary and foreign-exchange policy, currency issuance, reserve management, payment-system organization, financial-sector oversight within applicable law, and the production of key external-sector statistics. It remains a public monetary institution whose primary purpose is economic and financial stability rather than profit generation.
- 2019
Supervisory responsibilities return to the CBA
[1]Following liquidation of the Financial Market Supervisory Authority, its relevant powers and property were transferred to the CBA.
- 2016
Financial-supervision mandate reorganized
[1]Banking and insurance licensing, regulation, and supervision were transferred to a separate regulatory body.
- 2009
Institution adopts current name
[1]Constitutional amendments changed the name from National Bank to Central Bank of the Republic of Azerbaijan.
- 2006
New manat introduced
[1]A redenominated manat replaced the old currency at a ratio of 1 to 5,000.
- 1994
Manat becomes sole legal tender
[1]The manat replaced other currencies as Azerbaijan’s exclusive legal tender.
- 1992
National Bank established after independence
[1]A presidential decree created the National Bank of the Republic of Azerbaijan, the direct predecessor of the present CBA.
- 1992
Azerbaijani manat enters circulation
[1]The manat was issued as the national currency of independent Azerbaijan.
- 1923
Independent issuance functions end
[1]A unified Transcaucasian monetary system ended the Azerbaijan State Bank’s emission role, and the institution was later renamed the Azerbaijan State Agricultural Bank.
- 1921
Azerbaijan State Bank re-established
[1]The bank was restored during the New Economic Policy period.
- 1920
Azerbaijan State Bank becomes Azerbaijan People’s Bank
[1]Following the establishment of Soviet rule, the bank was renamed and credit institutions were nationalized under state control.
Products and positioning
Sovereign central bank and monetary authority serving Azerbaijan’s macroeconomic, currency, payment-system, and financial-stability needs.
National currency · 1992
Azerbaijani manat
The CBA holds the constitutional and statutory authority to issue Azerbaijan’s national currency and withdraw monetary units from circulation. The manat was introduced in 1992, became the sole legal tender in 1994, and was redenominated in 2006 at a rate of one new manat for 5,000 old manats.
Central-bank policy
Monetary and foreign-exchange policy
The CBA formulates and implements monetary and foreign-exchange policy within its legal mandate. Its central statutory objective is maintaining price stability, while its policy responsibilities also support macroeconomic and financial stability.
Financial infrastructure
Payment-system infrastructure
The CBA organizes and regulates centralized interbank and other licensed payment systems. This function places the institution at the center of Azerbaijan’s payment infrastructure and settlement framework.
Financial regulation
Financial-market supervision
Within the applicable legal framework, the CBA licenses, regulates, and supervises relevant financial-market activities, including banking, insurance, and securities-related functions. The scope of this mandate has changed as Azerbaijan reorganized its financial supervisory institutions.
Brand decisions
2019
Financial-market supervisory powers restoredStrategyBackground
The Financial Market Supervisory Authority was liquidated as part of a change in the management of financial-services regulation.
Action taken
Its legal powers, responsibilities, and property, including financial-services licensing, regulation, supervision, and investor and consumer protection, were transferred to the CBA.
Aftermath
The CBA resumed a broader role across Azerbaijan’s financial-market regulatory system.
2016
Banking and insurance supervision separated from the CBAStrategyBackground
Azerbaijan reorganized financial regulation by creating a separate body for licensing, regulating, and supervising banks and the insurance sector.
Action taken
Those supervisory authorities were assigned to the newly established regulator, while the CBA focused more closely on monetary policy, exchange-rate policy, stability, payments, and cash circulation.
Aftermath
The supervisory structure was later reversed after the separate financial-market authority was liquidated in 2019.
2009
Institution renamed as the Central BankStrategyBackground
Constitutional amendments changed the terminology and institutional designation of Azerbaijan’s monetary authority.
Action taken
The National Bank of the Republic of Azerbaijan became the Central Bank of the Republic of Azerbaijan.
Aftermath
The institution continued as Azerbaijan’s central bank under the updated constitutional and statutory framework.
2005
Currency redenomination approvedGeneration changeBackground
Azerbaijan adopted a presidential decree to change the nominal value of its monetary units and simplify the price scale.
Action taken
The new manat was introduced on 1 January 2006 at a conversion rate of one new manat for 5,000 old manats, with parallel circulation during 2006.
Aftermath
The new manat became the sole currency in use from 1 January 2007.
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