The money of the Soviet period

On April 28, 1920, at result of occupation of Azerbaijan by the Bolshevik Russia the state independence was retained formally by the name of Azerbaijan Soviet Socialist Republic, the country\'s existing money- credit system was destroyed. By order of the Finance Commissioner dated May 31, 1920, the State Bank of Azerbaijan was renamed as People’s Bank of Azerbaijan.    

The money units put into circulation by Azerbaijan Soviet Socialist Republic (ASSR) from May 1923 to March 1920, are kept in the Museum of History with the completeness. The first money unit of Azerbaijan SSR put into circulation in 1920 was in value of 100 manat emitted in the form of large format. This face value was emitted in series I-IV and out into circulation. The second emission was carried out in 1920. This emission was 5 manat (two variants), 100 (two variants) and AZN 1000 (small variant).  In 1922, this emission was continued with four new currencies - 5000, 10000, 25000, 50000 manat (two variants). The economic crisis that began since 1921, in 1922 covered the larger areas, so purchasing power of money started to lose rapidly, become devaluated. Being exposed to bad inflation, the government of the Azerbaijan Soviet Socialist Republic was forced to emit into circulation large monetary units. Thus, three new banknotes put into circulation in 1922 - 100000 (three variants), 250000 (two variants), and 1000000 and early of 1923  5000000 rubles were added. On March 12, 1922, the Federal Union of the Transcaucasian Soviet Socialist Republics (TSFSR) comprising Azerbaijan, Georgia and Armenia was organized. On December 30, 1922 TSFSR became a part of the the Union of Soviet Socialist Republics. TSFSR passed to single monetary system by Ordinance of the Council of the Union dated January 10, 1923 and thus the activity of the State Bank of Azerbaijan in the field of monetary issue was suspended. 

In 1923-1924 money units of the Transcaucasian Soviet Federal Socialist Republic (TSFSR) were in circulation in Azerbaijan.  In TSFSR the star water mark was implemented in paper money. Units of 5000, 10000, 50, 000, 100, 000, 250, 000, 500, 000 and 1 000 000, still in the second issuance with star water mark were issued starting from 5000 to 10 000, 50, 000, 100, 000, 250, 000, 500, 000, 1 000 000 5 000 000 10 000 000 rubles face values and in third emission with papers having no special marks on 10000 25 000 50, 000, 000, 000, 250, 000, 500, 000, 1 000 000 5 000 000 10 000 000 manat. 

In 1922-1923 as a result of the economic crisis and excessive inflation getting worsened daily in the Transcaucasian republics in the early 1924 with the decision of the government of TSFSR greater monetary units were put into circulation. TSFSR’s last money emission started from 25 million rubles to 50, 75, 100, 250 million manats, and 1, 10 billion rubles. In the history of world money circulation just once in TSFSR  the money unit of 10 billion was put in the circulation. 

In Azerbaijan where the economic situation in comparison with other South Caucasus countries was high, the local monetary unit – manat had a slight superiority over the alternative currency of TSFSR. The two money groups were used with a special exchange rate fixed by the government of ASSR. Money of these two emissions were printed in two forms: on papers with the water mark to protect against the falsity and in papers without the special mark (25, 000, 000, 75 000 000). In 1923, in connection with the establishment the USSR State Bank its Baku branch was created. In accordance with the Constitution of the USSR, which was adopted in December 1936, Azerbaijan was incorporated in the Soviet Union as the sovereign republic.

After the war, the reform of the money was held in December 1947, the distribution of the product on card system has been canceled and new single price of state-level co-operative retail trade has been determined.  All money units in circulation were exchanged with 10:1 ratio for the new banknotes and coins. Exchange rate of manat to foreign currency began to be determined on the basis of the gold, and its rate had been increased, then the price scale was changed, too. Money units in circulation since January 1, 1961 were replaced with the new banknotes and coins on the ratio of 10:1. The new gold composition of manat was determined as 0,987412 gr. of gold.