Venezuelan bolívar

Bolívar The bolívar is named after the hero of South American independence Simón Bolívar. The bolívar was introduced by President Guzman Blanco, who around one hundred years after Simón Bolívar's birth, undertook various projects to honour his contribution to Venezuelan history. The coin appeared in the monetary law of 1879, replacing the short-lived venezolano at a rate of five bolívares to one venezolano. Initially, the bolívar was defined on the silver standard, equal to 4.5 g fine silver, following the principles of the Latin Monetary Union. The monetary law of 1887 made the gold bolívar unlimited legal tender, and the gold standard came into full operation in 1910. Venezuela went off gold in 1930, and in 1934, the bolívar exchange rate was fixed in terms of the US dollar at a rate of Bs. 3.914 = US$1, revalued to Bs. 3.18 = 1 US dollar in 1937, a rate which lasted until 1941. Until 18 February 1983 (now called Viernes Negro, Spanish for Black Friday, by many Venezuelans), the bolívar had been the region's most stable and internationally accepted currency. It then fell prey to high devaluation. Exchange controls were imposed on February 5, 2003, to limit capital flight. The rate was pegged to the US dollar at a fixed exchange rate of Bs. 1,600 to the dollar. Hard bolívar The government announced on 7 March 2007 that the bolívar would be redenominated at a ratio of 1,000 to 1 on 1 January 2008 and renamed the bolívar fuerte, or hard bolívar in an effort to facilitate the ease of transaction and accounting. The newer name literally means "hard bolívar", as in hard currency, and in reference to an old coin called the peso fuerte worth 10 Spanish reales. The alternate meaning of "strong" was also used by the government in promotional material The official exchange rate is restricted to individuals by CADIVI, which imposes an annual limit on the amount available for travel., inverted logarithmic scale).|alt=|left Since the government of Hugo Chávez established strict currency controls in 2003, there have been a series of five currency devaluations, disrupting the economy. On 8 January 2010, the value was changed by the government from the fixed exchange rate of Bs.F 2.15 to Bs.F 2.60 for some imports (certain foods and healthcare goods) and Bs.F 4.30 for other imports like cars, petrochemicals, and electronics. On 4 January 2011, the fixed exchange rate became Bs.F 4.30 for US$1.00 for both sides of the economy. On 13 February 2013 the hard bolívar was devalued to Bs.F 6.30 per US$1 in an attempt to counter budget deficits. On 18 February 2016, President Maduro used his newly granted economic powers to devalue the official exchange rate of the hard bolívar from Bs.F 6.30 per US$1 to Bs.F 10 per US$1, which is a 37% depreciation against the US dollar. The hard bolívar entered hyperinflation in November 2016. On February 5, 2018, the Central Bank of Venezuela announced a devaluation, with the exchange rate going to Bs.F 25,000 per US$. This made the hard bolívar the second-least-valued circulating currency in the world based on the official exchange rate, behind only the Iranian rial, and between September 2017 and August 2018, according to the informal exchange rate, the hard bolívar was the least-valued circulating currency unit in the world. The official exchange rate stood at Bs.F 248,832 to US$1 as of August 10, 2018, making it the least-valued circulating currency in the world based on official exchange rates. In June 2018, the government authorized a new exchange rate for buying, but not selling, currency. On August 13, 2018, the rate was Bs.F 4,010,000 to US$1, according to ZOOM Remesas. Sovereign bolívar On 22 March 2018, President Nicolás Maduro announced a new monetary reform program, with a planned revaluation of the currency at a ratio of 1,000 to 1. The change was to be made effective from 4 June 2018. In May 2018, the government required prices to be expressed in both hard bolívares and sovereign bolívares at the then-planned rate of 1,000 to 1. For example, one kilogram of pasta was shown with a price of Bs.F 695,000 and Bs.S 695. Prices expressed in the new currency were rounded to the nearest 50 céntimos as that was expected to be the lowest denomination in circulation at launch. The rounding created difficulties because some items and sales qualities were priced at significantly less than Bs.S 0.50; for example a litre of gasoline and a Caracas Metro ticket typically cost Bs.S 0.06 and Bs.S 0.04, respectively. announcing the redenomination of the Venezuelan bolívar on 17 August 2018. The change in currency was originally scheduled for June 4, 2018. The President delayed the planned June launch date of the sovereign bolívar, citing from Aristides Maza, "the period established to carry out the conversion is not enough". The revaluation was rescheduled to 20 August 2018, and the rate changed to 100,000 to 1, with prices being required to be expressed at the new rate starting 1 August 2018. On 20 August 2018, the Maduro government launched the new sovereign bolívar currency, with Bs.S 1 worth Bs.F 100,000. New coins in denominations of 50 céntimos and Bs.S 1, and new banknotes in denominations of Bs.S 2, Bs.S 5, Bs.S 10, Bs.S 20, Bs.S 50, Bs.S 100, Bs.S 200 and Bs.S 500 were introduced. Under the country's official fixed exchange rate to the US dollar the new currency was devalued by roughly 95% compared to the old hard bolívar. The day was declared a bank holiday to allow the banks to adjust to the new currency. Initially, during a transition period the sovereign bolívar was to be run alongside the hard bolívar. However, from the start of the transition, on 20 August, hard bolívar notes of Bs.F 500 and less could not be used; only deposited at banks. Concurrently with the release of the new currency, the minimum wage was raised to Bs.S 1,800 per month, a 33-fold increase, and the standard value-added tax rate was hiked from 12% to 16%. The petro was supposedly tied to the price of a barrel of oil (about US$60 in August 2018). As of the end of August 2018, there was no evidence that the cryptocurrency was being traded. Petro was regarded by many as a scam. On January 15, 2024, Petro was shut down and any remaining holdings were liquidated. Following the introduction of the sovereign bolívar, inflation increased from 61,463% on 21 August 2018 to 65,320% on 22 August 2018. Digital bolívar The bolívar digital, lit. "digital bolívar" was introduced on 1 October 2021 at a rate of Bs.S 1,000,000 to 1 digital bolívar. Since its announcement, the Central Bank has used the abbreviation "Bs." (i.e., not "Bs.D") in examples of prices marked in digital bolívares. For example, the Bs.S 500,000 banknote is worth 0.50 digital bolívars, an amount which can also be referred to as 50 céntimos of a digital bolívar. From October 1, 2021 through 27 April 2022 retailers were required to post prices in both sovereign and digital bolívars, By 2024, however it was more common to see prices posted in "REF" (or "Ref", "ref", etc.), an abbreviation for the word '''', representing a price in U.S. dollars, which customers can pay in digital and/or sovereign bolívars at the current exchange rate as published by the central bank. In 2025, there has been a remarkable reversal in the dollarization of the economy outside tourist spots, with more than 80% of transactions in the country being made in bolívares. The stock of U.S. dollars in cash decreased from $8 billion in November 2024 to $5 billion as of April 2025. Depreciation of the currency resumed, with the official exchange rate surpassing 100 bolívares per U.S. dollar in June 2025, 200 per U.S. dollar in October of that year, 300 per U.S. dollar in January 2026, and 400 per U.S. dollar in February of that year. Due to a 37% depreciation of the bolívar against the U.S. dollar in the first three months of 2026, the Central Bank of Venezuela sold US$330 million since March 31, 2026 as intervention to slow the depreciation of the national currency. ==Currency black market==

in January 2019 and the relaxation of currency controls on May of that year, the curve has been less steep than previously, meaning that the rate at which the value is lost, inflation, has slowed down. The black (or parallel) market value of the hard bolívar and the sovereign bolívar has been significantly lower than the fixed exchange rate and other rates set by the Venezuelan government (SICAD, SIMADI, DICOM). In November 2013, it was almost one-tenth that of the official fixed exchange rate of Bs.F 6.30 per US dollar. In September 2014, the currency black market rate for the hard bolívar reached 100 VEF/USD; on 25 February 2015, it went over 200 VEF/USD. on 7 May 2015, it was over 275 VEF/USD and on 22 September 2015, it was over 730 VEF/USD. Venezuela still had the highest inflation rate in the world in July 2015. By 3 February 2016, this rate reached 1,000 VEF/USD. This rate surpassed 4,300 VEF/USD on 10 December 2016. It surpassed 10,000 VEF/USD on 28 July 2017, and on 7 September 2017, the rate surpassed 20,000 VEF/USD for the first time. Inflation accelerated, and on 1 December 2017, it reached 100,000 VEF/USD for the first time ever. The rate surpassed 200,000 VEF/USD on 18 January 2018, then 500,000 VEF/USD on 16 April, 1 million VEF/USD on 30 May, 2 million VEF/USD on 7 June, and 5 million VEF/USD on 16 August. One website that has been publishing parallel exchange rates since 2010 is DolarToday, which has also been critical of the Maduro government. This table shows a condensed history of the parallel foreign exchange rate of the Venezuelan bolívar (hard and sovereign) to one United States dollar between 2012 and 2021, according to DolarToday. From October 2021 onwards, with the introduction of the digital bolívar, the exchange rates shown below are according to those quoted by the Central Bank of Venezuela on the last working day of each month. In June 2025, over 50 people were arrested for illegal activities in the foreign exchange market, including the publication of unofficial exchange rates, which were often quoted at a premium to the BCV's exchange rate. ==Coins==

Bolívar In 1879, silver coins were introduced in denominations of Bs. , Bs. , Bs. 1, Bs. 2, and Bs. 5, together with gold Bs. 20. Gold Bs. 100 were also issued between 1886 and 1889. In 1894, silver Bs.  coins were introduced, followed by cupro-nickel 5 and céntimos in 1896. In 1912, production of gold coins ceased, whilst production of the Bs.5 ended in 1936. In 1965, nickel replaced silver in the 25 and 50 céntimos, with the same happening to the 1 and 2 bolívares in 1967. In 1971, cupro-nickel 10 céntimo coins were issued, the céntimos having last been issued in 1958. A nickel Bs. 5 was introduced in 1973. Clad steel (first copper, then nickel and cupro-nickel) was used for the 5 céntimos from 1974. Nickel clad steel was introduced for all denominations from 25 céntimos up to 5 bolívares in 1989. In 1998, after a period of high inflation, a new coinage was introduced in denominations of Bs. 10, Bs. 20, Bs. 50, Bs. 100 and Bs. 500. The former coins were: All the coins had the same design. On the obverse the left profile of the Libertador Simón Bolívar is depicted, along with the inscription "Bolívar Libertador" within a heptagon, symbolizing the seven stars of the flag. On the reverse the coat of arms is depicted, circled by the official name of the country, with the date and the denomination below. In 2001, the reverse design was changed, putting the denomination of the coin at the right of the shield of the coat of arms, surrounded in a semicircle by the official name of the country and the year of its issue below. Hard bolívar Coins of the hard bolívar were in denominations of 1, 5, 10, , 25, 50 céntimos, and Bs.F 1. They were quickly rendered obsolete by high inflation. It may be noticed that there was a -céntimo coin and a 1-céntimo coin, but no -céntimo coin. Therefore, giving correct change for a purchase of, say, céntimos would require using a -céntimo coin and getting 8 céntimos back. These coins were worthless by September 2014. In December 2016, it was announced that coins of Bs.F 10, Bs.F 50, and Bs.F 100 would enter circulation. These three coins would replace the banknotes of the same denominations. These three coins were worthless by July 2017. Sovereign bolívar Sovereign bolívar coins were announced to be produced in denominations of 50 céntimos and Bs.S 1 (Bs.F 50,000 and Bs.F 100,000 respectively). These two coins were worthless by October 2018. Digital bolívar Coins of the Digital bolívar were issued on October 1, 2021 in denominations of 25 and 50 céntimos and 1 bolívar. The coins were introduced along with the redenomination of the currency from the Sovereign bolívar to the Digital bolívar. These three coins were worthless by June 2025. ==Banknotes==

Bolívar In 1940, the Banco Central de Venezuela began issuing paper money, introducing denominations of Bs. 10, Bs. 20, Bs. 50, Bs. 100 and Bs. 500. Bs. 5 notes were issued between 1966 and 1974, when they were replaced by coins. In 1989, notes for Bs. 1, Bs. 2 and Bs. 5 were issued. As inflation took hold, higher denominations of banknotes started being introduced: Bs. 1,000 in 1991, Bs. 2,000 and Bs. 5,000 in 1994, and Bs. 10,000, Bs. 20,000 and Bs. 50,000 in 1998. The first Bs. 20,000 banknotes were made in a green color similar to the Bs. 2,000 banknotes, which caused confusion, and new banknotes were made in a new olive green color. Starting from 2000, banknotes ranging from Bs. 5,000 to Bs. 50,000 were renamed to REPÚBLICA BOLIVARIANA DE VENEZUELA instead of BANCO CENTRAL DE VENEZUELA on the obverse, after the 1999 constitution was adopted. Moreover, banknotes of Bs. 10,000, Bs. 20,000 and Bs. 50,000 were updated in April 2006 after the National Assembly approved changes to the coat of arms, which were made official on March 12, 2006. The following is a list of former Venezuelan bolívar banknotes: Hard bolívar (bolívar fuerte, Bs.F, VEF) 2008–2016 ("2007") New banknotes of the series 2007–2015 with values of Bs.F 2 to Bs.F 100 were issued from 20 March 2007 until 5 November 2015 and became legal tender from 1 January 2008 to 20 August 2018. The greater the values, the longer re-issuing occurred. Only the Bs.F 50 and Bs.F 100 notes were re-issued in November 2015. • Bs.F 2: March 20, 2007 to August 19, 2014 • Bs.F 5: March 20, 2007 to August 19, 2014 • Bs.F 10: March 20, 2007 to August 19, 2014 • Bs.F 20: March 20, 2007 to August 19, 2014 • Bs.F 50: March 20, 2007 to November 5, 2015 • Bs.F 100: March 20, 2007 to November 5, 2015 2016–17 branch in Chacao to deposit the Bs.F 100 note after President Maduro withdrew it from circulation. High inflation, which was a part of Venezuela's economic collapse, caused the hard bolívar's value to plummet. The Bs.F 2 and Bs.F 5 notes were no longer found in circulation due to the hyperinflation, but remained legal tender. By December 2016, the Bs.F 100 note, the largest denomination, was only worth about two U.S. cents on the black market. On 7 December 2016, a new series of banknotes (recolors of the previous notes) in denominations of Bs.F 500, Bs.F 1,000, Bs.F 2,000, Bs.F 5,000, Bs.F 10,000, and Bs.F 20,000 were unveiled to the Venezuelan public. With more than 6 billion Bs.F 100 notes issued consisting of 46% of Venezuela's issued currency, Maduro enacted an exchange for Venezuelan citizens to transfer all Bs.F 100 notes for Bs.F 100 coins while also blocking international travel to prevent the return of the bolívares that were supposedly stockpiled. The government justified the move claiming that the United States was working with crime syndicates to spirit away Venezuela's paper money to warehouses in Europe to cause the fall of the government. The government was thwarting this threat by withdrawing the notes from circulation. On 14 February 2017, Paraguayan authorities uncovered a 30-tonne stash of Bs.F 50 and Bs.F 100 notes totaling Bs.F 1.5 billion on its Brazilian border that had not yet been circulated. According to a United States Department of Defense adviser linked to The Pentagon, the Bs.F 1.5 billion was printed by Venezuela and destined for Bolivia, since unlike the implied exchange rate of thousands of hard bolívares equaling one United States dollar, the exchange rate was approximately 10 hard bolívares per dollar, making the value of the stash 419 times stronger, from US$358,000 to US$150 million. Banknotes with a face value below BsF. 1,000 were withdrawn from circulation and ceased to be legal tender on 20 August 2018. They had to be deposited in local banks. 2018 By May 2018, the hard bolívar's banknotes represented very little value and they had become in short supply, causing bolívares in cash to be valued at a premium relative to their face value. Weighing scales could no longer convert mass to price and receipts could no longer fit the numbers on their paper. In June 2018, seven months after its release, the value of the Bs.F 100,000 note (largest denomination), had its value reduced by 98%, from US$2.42 (in November 2017) to US$0.05, as a result of increasing hyperinflation. The lower denomination hard bolívar banknotes (up to Bs.F 500) were demonetized on 20 August 2018; with the introduction of the sovereign bolívar. Higher denominations (Bs.F 1,000 and above) remained legal tender during a transition period. On 30 November 2018, it was announced that the remaining denominations of the old currency will be withdrawn from circulation and cease to be legal tender on 5 December 2018. Sovereign bolívar 2018 On 22 March 2018, with a declared state of emergency, a redenomination of the currency was announced. The conversion from hard bolívar to sovereign bolívar banknotes officially occurred on 20 August 2018, with new denominations of Bs.S 2, Bs.S 5, Bs.S 10, Bs.S 20, Bs.S 50, Bs.S 100, Bs.S 200, and Bs.S 500. Four months after entry into circulation, shops and state banks began refusing the Bs.S 2, as its value had significantly declined since the redenomination. By November 2019, except for the Bs.S 500, all notes issued in 2018 were worthless. 2019 Further inflation since the soberano redenomination resulted in the creation of Bs.S 10,000, Bs.S 20,000 and Bs.S 50,000 banknotes in June 2019. Not mentioning inflation, the Central Bank of Venezuela said the introduction of the new banknotes would "complement and optimize" the monetary system and that their purpose was to make payment systems "more efficient". On 23 April 2020, the exchange rate per xe.com was US$1 = 144,697.34 VES; the following day, the rate slid to US$1 = Bs.S 171,140.42. Banknotes with a narrow segmented security thread were printed by Goznak, those with a wider one were printed elsewhere. Banknotes of Bs. 10,000, Bs. 20,000, Bs. 50,000, and Bs. 200,000 of the sovereign bolívar ceased being legal tender on 25 September 2024. 2020 As of December 2020, the highest denomination banknote (Bs.S 50,000) was worth less than US$0.05 and the minimum wage is Bs.S 1,200,000 (about US$1) per month. By September 2020, all sovereign bolivar banknotes (Bs.S 2 to Bs.S 500) issued on 20 August 2018 were deemed worthless. Venezuelan officials are planning a new Bs.S 100,000 note. Meanwhile, as of 16 December 2020, the exchange rate was over 1 million bolivares to one US dollar. 2021 On 5 March 2021, the Central Bank of Venezuela introduced 3 new denominations: Bs.S 200,000, Bs.S 500,000 and Bs.S 1,000,000 which were made available to the general public on 8 March 2021. The Bs.S 1,000,000 note was only worth US$0.52 at the time of the announcement. By late May 2021 the exchange rate had risen to over 3 million sovereign bolívares to one US dollar. By June 2025, except for the Bs.S 200,000 was withdrawn from circulation since September 2024, all notes issued in 2021 (Bs.S 500,000 and Bs.S 1,000,000) were worthless, but remain legal tender. Digital bolívar Banknotes of 5, 10, 20, 50, and 100 digital bolívares were introduced in 2021, all bearing similar motifs but different colors. According to the Central Bank of Venezuela's data, banknotes of higher denominations did not actually start circulating immediately until later on, with only the 5 and 10 bolívar banknotes circulating at first, followed by the Bs. 20 in March 2022 and the Bs. 50 and Bs. 100 in May 2022. In August 2024, banknotes of 200 and 500 bolívares were introduced, distinguished from the lower denominations for having multiple portraits of Simón Bolívar. ==Notes==