Azerbaijan expects to keep the manat at 1.70 to the US dollar through 2030, signalling the government’s confidence in the country’s current currency framework. But the outlook is about more than maintaining a fixed exchange rate. Rising household savings in manat, declining deposit dollarisation and a sharp increase in the Central Bank’s foreign exchange reserves suggest that the foundations of currency stability remain firm.
Together, these trends offer a useful insight into how Azerbaijan is managing financial confidence amid uncertain global markets. The key question is whether growing reserves, energy export revenues and domestic demand for the national currency will be sufficient to sustain the current exchange rate over the next four years. The Ministry of Economy has incorporated the 1.70 exchange rate into its macroeconomic projections for 2027–2030.
According to the government, the stable manat has helped create favourable conditions for domestic demand, limit currency risks in financial and consumption decisions, and strengthen the national currency’s position in household savings. These developments offer an important foundation for confidence among depositors, businesses and investors. Banking statistics provide tangible evidence of this confidence.
According to Azerbaijan’s State Statistical Committee, individual deposits in banks reached 18.21 billion manat at the end of August 2026, representing annual growth of 17.8%. This expansion demonstrates the growing volume of financial resources held by households within the domestic banking system. Rising deposits also strengthen banks’ funding base and expand their capacity to finance economic activity.
The currency composition of these savings offers an equally important indicator. Central Bank Chairman Taleh Kazimov reported that individuals’ manat-denominated deposits increased by 1.3 billion manat, or 11.6%, during the first half of 2026, reaching 12.5 billion manat at the end of June. The dollarisation rate of resident individuals’ deposits declined to 25.6%, a reduction of 3.8 percentage points since the beginning of the year.
These figures illustrate households’ growing willingness to maintain savings in the national currency. The Central Bank’s foreign-exchange operations provide another significant indicator. Excess foreign-currency supply in the domestic market has enabled the regulator to purchase dollars and accumulate additional reserves.
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