Turkmenistan is a producer of gas and oil, it possesses the world’s fourth-largest reserves of natural gas and substantial oil resources., its currency which is sovereign, not exchangeable, can only be used within its borders.
How Petroleum Companies are interested in the MANAT Currency
As well, the development of Turkmenistan’s infrastructure imposes on potential investors the sole use of the Manat (TMT) to the exclusion of other currencies. It is the same for the acquisitions of oil, gas, oil research, or others.
While this currency is not freely tradable, it is nonetheless regulated. This regulation of Manat exchanges is conducted by the Central Bank of Turkmenistan, so, in order to be able to trade TMT vs EURO or USD, authorizations are required
The first obligation for a potential investor is to have an ISO 934 account, the only account that can receive Manats. It should be noted that multi-currency accounts are not authorized to collect this TMT currency.
It is obvious that at the beginning of each arrangement, and after the agreement on the Net / Gross prices, the quantity, and the commissions of the intermediaries, the account 934 is essential before the beginning of each transaction and that each customer must provide for that our trusts verify and validate it with the central bank of Turkmenistan, without their confirmations, we will not even bother to try any approach.
Once the 934 account is verified, confirmed, and ensuring the interests of intermediaries if there are any, we put the buyer and seller in direct contact through their legal officers to formalize the deal.
How we sell TMT MANAT
The central bank, via approved service providers, having the status of agents, receives quotas authorized by the CBT, to dispense these quantities to potential investors. Thus the authorizations of the Central Bank are given in advance and exempt the investor from obtaining them individually.
However, the imperative preliminary verification relates to the existence of the 934 accounts and is the responsibility of the service provider to carry out the usual procedures to determine the quality of this account.
There are two types of 934 accounts, the first is 934 within Turkmenistan borders, and the second is 934 extra borders.
These account type statuses influence the prices charged in exchanges.
To avoid any dissemination of proof of funds to intermediaries, if the buyer wishes, this POF can be produced by intermediary bank officers.
- Send an LOI specifying the amount to buy with the preferred target price
- Attach the buyer’s CIS,
- His copy of the passport,
- the certificate of incorporation with the resolution board of authorization to contract, if it is a company,
- and also the account number 934 to receive manats pour test,
- Then we send you a contract to sign and as said above the POF can be done by bank officers from each party to the other.
Upon receipt of these documents, we will put our official provider and agent of the central bank of Turkmenistan in direct contact with the buyer, or his agent for the finalization of the file, and the signature of the NCNDA-IMFPA.
All the authorizations of the Central Bank of Turkmenistan have been given, for immediate execution.