Under the Turkmenchay treaty of 1828, Persia ceded to Russia what is now independent Azerbaijan. Northern Azerbaijan (from here on, Azerbaijan) was part of the Russian Empire when the Russian civil war broke out. Azerbaijan was part of the short-lived Transcaucasian Republic from September 20, 1917 to May 26, 1918. Azerbaijan had support from the Ottoman Empire and was under British protection for a short period of time. Azerbaijan remained independent until April 28, 1920 when Soviet forces formed the Armenian Socialist Soviet Republic. On March 12, 1922 it became part of the Federative Union of Soviet Socialist Republics of Transcaucasia, which became a founding component of the Soviet Union on December 30, 1922. It was part of the Transcaucasia SSR until December 5, 1936 when the Azerbaijan SSR was established. Azerbaijan declared its independence from the Soviet Union on September 23, 1991. The southern portion of Azerbaijan remains part of Iran with Tabriz as its capital.
Russian Rubles (RUEP) were used in Azerbaijan until 1918. The Transcaucasian Republic Ruble (ZKVR), the Azerbaijan Republic Ruble (AZR), Azerbaijan Soviet Ruble (AZSR) and the Transcaucasian Soviet Ruble (ZKSR) were issued by each of the governments that ruled over Azerbaijan during the Russian Civil War.
After gaining independence, the Baku branch of the State Bank was transformed into a local central bank. Banknotes, and not coins, were issued, and in each case, the Ruble was divisible into 100 Kopeks. Azerbaijan established a separate currency with the Charter of the State Bank of Azerbaijan on September 16, 1919.
Transcaucasia suffered the highest inflation of any SFSR, issuing a 1,000,000,000 Ruble note in 1924. The Transcaucasian Commissariat issued the Transcaucasian Republic Rubles, the Azerbaijan government issued the Azerbaijan Ruble, the Azerbaijan Socialist Soviet Republic issued the Azerbaijan Soviet Ruble, and the Transcaucasian Socialist Federal Soviet Republic issued the Transcaucasian SFSR Ruble.
After 1924, Soviet rubles were used. The Azerbaijan State Bank was converted into a branch of the State bank of the USSR on January 10, 1923 and the other functions of the State Bank of Azerbaijan as a central bank were ended by a decree of the Council of the People's Commissariat of Azerbaijan, July 3, 1923. The Chervonetz (SUC) was introduced on December 27, 1922, which was backed 25% by gold, and eventually replaced the Ruble Sovnazki as a unit of account. The Gold Ruble (SUG) was introduced on March 7, 1924 equal to 1/10 Chervonetz. A New Ruble (SUN) replaced the Gold Ruble on December 29, 1947 at the rate of 1 New Ruble equal to 10 Gold Rubles. On January 1, 1961, the Hard Ruble (SUR) replaced the New Ruble at the rate of 1 Hard Ruble equal to 10 New Rubles. Under the Soviet Union, the State Treasury and by the State Bank (Gosbank) issued banknotes.
After gaining its independence on December 25, 1991, Armenia continued to use the Russian Ruble (RUR). Azerbaijan established the National Bank of Azerbaijan on August 7, 1992. The Russian Ruble was replaced with the Azerbaijan Manat (AZM) on November 22, 1993 at the rate of 1 Dram equals 10 Russian Rubles, and the Russian Ruble ceased to be legal tender on January 1, 1994. The Manat has no secondary unit. The Azerbaycan Milli Bank (Azerbaijan Central Bank) has issued banknotes for Azerbaijan.
The Azerbaijani section of Iran had a Communist-led revolt and declared its independence from Iran on December 15, 1945, but Iranian troops ended the republic on December 11, 1946. During this period of time, Iranian Azerbaijan issued its own banknotes. |
