Electronic payment systems are gaining traction in Azerbaijan as consumers increasingly shift away from using cash in retail transactions. Cash still remains a common method of payment, and ATMs and credit/debit card payment machines are widely available. Foreign credit cards are not universally accepted, and travelers should confirm acceptance before relying on them for purchases. Mobile payment systems, such as QR code-based platforms and app-based wallets, have expanded operations in recent years, though adoption remains limited compared to global standards.
For larger transactions, interbank wire transfers are the preferred method, as personal checks are not accepted anywhere in Azerbaijan. All payments must be made in Azerbaijani manat (AZN), the local currency.
Azerbaijan has established a credit rating agency to support financial transparency and creditworthiness assessments. However, credit rating and collections infrastructure remains underdeveloped, posing challenges for businesses and individuals seeking to access credit or enforce payment obligations.
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.
The average interest rate on business loans in Azerbaijan was reported at 11.37 percent. This rate represents a slight increase from previous months, indicating a stable but relatively high-rate lending environment. For dollar-denominated loans, interest rates can be even higher, often ranging from 10 percent to 35 percent or more, with maximum terms typically up to two years. Consequently, many Azerbaijani firms seek alternative financing sources, including private investors and foreign capital. Some local banks started extending credit to the private sector firms in industries such as construction, telecommunications, food processing, and packaging. Western businesses operating in Azerbaijan generally engage with a select group of local banks for their financial transactions.
Lending in the banking sector grew steadily, with total loans reaching $16.3 billion (AZN 27.88 billion) by March 2025. Business loans accounted for 53.6 percent of the portfolio, consumer loans 30.9 percent, and mortgages 15.5 percent. Deposits and loans have continued to expand, supported by stable macroeconomic conditions. The share of impaired loans remains low, reflecting improvements in credit quality. Dollarization of deposits and loans has gradually declined, while broad money expansion continues to support economic activity.
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
As of 2025, no U.S. banks have physical branches in Azerbaijan. However, correspondent banking relationships have significantly improved. In recent years, more than 10 Azerbaijani banks have established direct correspondent relationships with U.S. financial institutions, including major players like Citibank and BNY Mellon.