What Is the Turkmenistan Manat (TMT)?

The manat (TMT) is the national currency of Turkmenistan. It was introduced in January 2009, replacing the previous generation of currency at a rate of 1 TMT for every 5,000 units of the old manat.

As of Sept. 14, 2020, one Turkmenistan manat is equivalent to $0.29 in U.S. dollars.

Key Takeaways

  • The Turkmenistan manat (TMT) is the national currency of Turkmenistan. Each manat can be subdivided into 100 smaller coins or units known as “tenge.”
  • In recent years the Turkmenistan manat has traded at a ratio of approximately 0.29 U.S. dollars (USD) per TMT.
  • The current version of the TMT was introduced in 2009 due to the hyperinflation of the old manat. This previous version of the Turkmenistan manat was introduced in 1993, replacing the Russian ruble (RUB).

Understanding the Turkmenistan Manat (TMT)

Turkmenistan is a nation in Central Asia with a population of approximately 6 million people. Bordered by Kazakhstan, Uzbekistan, Afghanistan, Iran, and the Caspian Sea, Turkmenistan is largely a desert climate, and a large portion of the country is wholly uninhabitable by plants and animals.

Turkmenistan went through two changes to its national currency within the past several decades. In 1993, the old version of the manat was introduced, replacing the Russian ruble (RUB) when the country was under Russian rule. This old manat was then replaced by the current Turkmenistan Manat in 2009, due to hyperinflation in the currency. The old manat was replaced with a ratio of 5000 old manats equalling one new manat.

Today, the TMT’s banknotes are disseminated in denominations of 1, 5, 10, 20, 50, 100, and 500 manats. The bills primarily portray individuals in Turkmenistan's history, rather than political figures. Its coins, meanwhile, are minted in denominations of 1 and 2 manats. Each manat can be subdivided into 100 smaller units known as “tenge.” Accordingly, the manat also comes in smaller coins in denominations of 1, 2, 5, 10, 20, and 50 tenge.

Real-World Example of the TMT

The economy of Turkmenistan is focused largely on natural resources. Largely dependent on foreign trade, Turkmenistan’s largest export is cotton, although it is also home to the world’s fourth-largest deposits of natural gas. Between January 2015 and September 2020, the TMT has tended to be valued at around $0.29 U.S. dollars (USD) for every 1 TMT.

Turkmenistan has had a relatively tumultuous political history and criticized human rights record in recent decades. The country was part of the Soviet Union prior to achieving independence in 1991. After the fall of the Soviet Union, Turkmenistan set out to create a new constitution, which was written into law in 1992. After the first president of Turkmenistan refused to follow the new rules as they were laid out in the constitution, the country experienced a brief deviation from the laws it had adopted.

In 2006, after the death of the country's first president, the newly elected Gurbanguly Berdymukhammedov helped to rewrite the constitution once more. Amendments were made to the document again in 2016.