Venezuela Moneyk

Venezuela Money is known as Bolivar. Bolivar is the official currency of Venezuela and the code of Bolivar is VEB. It is also symbolized as the Bs. One VEB is made up of 100 centimes. Notes come in denominations of Bs. 50000, 20000, 10000, 5000, 2000, 1000, 500, 100, 50,20,10 and 5. Coins are available in denominations of Bs. 500, 100, 50, 25, 5, 2, 1 and 50, 20, 10, 5 centimes.

The Devaluation of Venezuelan Currency

President Chavez has tripled government expenditure in four years. The inflation rate has reached 16%, the highest in any Latin American country. Under the regime of the present President the economy of Venezuela has started to crumble. The value of VEB is declining day by day. It has decreased 30% this year to 4850 Bs. per US dollar at the black market, which is the only place where it trades freely outside the government control of foreign exchange. In 2005 the rate was 2150Bs per US$. The president has to devalue the currency to reduce the gap and enhance oil proceeds.

The Introduction of New Currency

The President has decided to launch a new series of money in February 2008. Venezuela will have a new currency in the form of Bolivar Fuerte Bs. F and the symbol will be VEF. Bs. F. Notes will be available in denominations of BsF 100, 50, 10, 5 and 2. Coins will come in denominations of 50,25,12.5, 10,5 and 1 centimes. The currency will start to circulate in the market in 2008.

The new currency referred to, as the strong Bolivar will have the exchange rate of 2.15 per dollar.