Methods of Payment

In many areas of the economy, retail transactions are still generally completed on a cash basis.  However, ATMs and credit/debit card payment machines are available in the retail market.  Foreign credit cards are not universally accepted.  Mobile payment systems also have started limited operations in Azerbaijan.  Large transactions can be done using inter-bank wire transfers.  Personal checks are not accepted anywhere.  All payments must be made in the Azerbaijani manat, the local currency.  Azerbaijan has established a credit rating agency, but credit rating and collections are not yet well developed in Azerbaijan.

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide available at The Trade Finance Guide: A Quick Reference for U.S. Exporters.

Banking Systems

Although long-term lending is increasing, the banking sector plays a small role in financing the real economy.  Lack of credit, stringent collateral requirements, high interest rates, dollarization, limited correspondent banking relationships, and an inability to assess credit risk are key constraints to the development of private businesses. 

Azerbaijani banks offer costly lending terms, usually 10-35% interest rates or higher in dollar-denominated loans with a maximum two-year term.  Many Azerbaijani firms turn to private sources for finance.  Some Azerbaijani banks have begun lending to the private sector, including construction, telecoms, food processing, and packaging.  Western businesses use a handful of local banks for their local business dealings. 

According to the Central Bank of Azerbaijan, the total assets of Azerbaijan’s banks as of January 1, 2023 exceeded 47 billion manat ($27.6 billion), while total liabilities accounted for 41.4 billion manat ($24.3 billion), and the total capital equaled 5.6 billion manat ($3.2 billion), The increase in manat deposits in 2022 reduced deposit dollarization to 50.8 percent from 54 percent in 2021) from 54% in 2021. The currency market of Azerbaijan remained stable, and the manat exchange rate has remained the same.

Foreign Exchange Controls

Azerbaijan has a liberal foreign exchange system and, in general, there are no current restrictions on converting or transferring funds into freely usable currency at a legal, market-clearing rate.  For more information, see the Conversion and Transfer Policies Section of the Investment Climate Statement.

U.S. Banks & Local Correspondent Banks

There are no U.S. banks with branches in Azerbaijan.  Very few Azerbaijani banks have correspondent banking relationships with a U.S. bank.