Some 60 percent of the country's food is imported. Quantitative and price restrictions are imposed on exports of cotton and other raw materials to protect domestic supplies. Also, all exports outside the former Soviet Union require a special license which, according to authorities, is granted freely. All foreign exchange earnings from exports must be repatriated and connected to the manat, the national currency. The government uses its power to issue passports and exit visas as a means of restricting international travel to political opponents or anyone out of favor with the government.
Foreign investment is encouraged.
The president oversees most major foreign investments, which has led to charges of mismanagement and corruption. The exchange rate of the manat, introduced in 1993, is set by the Central Bank. The manat is not freely convertible, and the exchange system has become increasingly restrictive and less transparent. In general, the overvalued exchange rate has severely distorted relative prices and retarded external trade. Since its introduction, the manat has been devalued by 90 percent in stages.