Money and securities issued in 1918-1920

After the October revolution in Russia in 1917, a new phase of life of Azerbaijan -  the period of people\'s self-consciousness and national revival was laid. History of independent monetary and monetary circulation of contemporary Azerbaijan in this century after an interval of hundred years begins in 1918 with issuance of paper money by the Municipality of Baku. Small paper money with face-value of 5, 15 and 50 gyapick, big money units of 1, 3, 5, 10 and 25 manats, which were put into circulation in January-April 1918, had difference of the color and size of papers. Since April 25, 1918 the Bolshevik faction captured power in Baku and soon a new governing body – Baku City Economic Council was created. By decision of the entity new paper moneys had been prepared and released into circulation. Emission of these paper moneys with 10, 25 and 50 manats of face value was executed by signature of People\'s Commissar N. Narimanov. This money units although lost its value after the resignation of Baku Commune in Jul 31, 1918 but it was still used by population in the years between 1918 and 1919 as a means of circulation. On March 7, 1919  by the decision of the government of the Republic of Azerbaijan and the offer on establishment of Azerbaijan State Bank (central bank) was approved and preparation of its Charter was assigned to the Minister of Finance. On September 16 of the same year, the parliament of Azerbaijan adopted the Charter of the State Bank prepared by the credit department of the Ministry of Finance of the Republic of Azerbaijan. On September 30, 1919 the inauguration of the State Bank of Azerbaijan was held, and from that day it started to function.

During the Peoples Republic of Azerbaijan on behalf of the Government of Azerbaijan in early of 1919 the few copies of the first paper money issued and put into circulation in face value of 100 manat, 25 manat (series I-VII) emitted in the middle of the same year, 50 manat (series I-XI), 100 (I-VIII of the series), 250 manat (series I-VII), and biggest face value 500 (I-IV series) manat emitted at the beginning of 1920 are kept in the Museum of History of Azerbaijan. On the last banknote the name of Republic of Azerbaijan and nominal was written in Azerbaijani, Russian and French languages. Authority to issue bank notes belonged to the State Bank. In general, during the Democratic Republic the banknotes and coins issued in the amount of 2 billion 345 million rubles. 

In order to ensure the convertibility of the national currency the government fixed the exchange rate of Baku bonds with other currencies as follows:

1000 rubles Kerenka - 1850 bonds (rubles)

500 rubles Romanovka - 1600 bonds

100 rubles Romanovka - 350 bonds

1 English pound sterling - 310-315 bonds

$ 1 - 280 bonds

1 French Franc - 8-10 bonds

1 Italian lira - 7 bonds

1 Iran tuman - 125-130 bonds

1 Turkish gold lira  - 390 bonds

1 Russian gold ten (chervon) - 420 bonds, etc.

The names of monetary units issued in 1919-1920 were given in Azerbaijani language in manats and in Russian in rubles. The main purpose was to gain the trust of population to new Republican currency compared to the paper money used in Russia for many years. The economic policy of the Republic of Azerbaijan in this sphere was organically linked with recognition of the national currency, the manat at international level.  Just for that reason and feeling the support of the government of France (in part, taking into account the role of the French language in those times), the Republic decided to write the names of face-value of 500 manat in the French language, too.

With the permission of the Government of the Republic of Azerbaijan, Baku Municipality had issued on August 20, 1919 one thousand units of 500 manat  and each fifty tickets divided in two thousand series fifty million prize winning bonds. The quota from Law on the bond issuance, the amount of prize fund, the rules and the term (1920-1972) were shown.