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Bolivar - the currency of Venezuela: history and features

Recently Bolivar, the currency of Venezuela, had a prefix "Fuerte", which means strong. This name implied the stability of the monetary unit, and a whole century was justified. Now the Venezuelan currency is among the leaders in the rate of devaluation.

The origin of the modern Venezuelan monetary unit (bolivar)

The currency that preceded the Bolivars, Venezuelano, was replaced by new signs in 1879. The name was given in honor of the leader of the movement for freedom of the country from Spain - Simon Bolivar, who became the main hero of Venezuela.

The first Bolivars were introduced in March 1871, but the next eight years, two currencies coexisted as full-fledged banknotes. Initially, the ratio of bolivar to Venezuela was 1 to 20, in the spring of 1879 there was a single (bolivar) currency. The exchange rate for new banknotes already amounted to 1 to 5 (for each Venezuelano gave 5 bolivars).

Binding Venezuela's currency to other units

At the time of the appearance, the bolivar was tied to the "silver standard" of the monetary union of Latin America. This meant that the monetary unit was equated to 4.5 g of silver or 0.29 g of gold. In addition to the bimetallic standard, protection from inflation gave the formula by which the issuance of new bank notes depended on the population of the country.

Over time, popularity was won by paper bills, nullifying the peg to silver. In 1887 it was decided to fix the bolivar in relation to gold. A new anchor appeared in 1934, after the United States of America was finally supplanted by all financial competitors. Then most of the countries established a peg to the US dollar, except for the Venezuelan (Bolivar) currency. The rate to the dollar was 3.91 to 1, in 1937 it was changed by 3.18 to 1 and stayed at that level until 1983. All this time the monetary unit of Venezuela was considered one of the most stable not only in Latin America, but in the whole world.

It is also worth noting that the Venezuelan economy is significantly dependent on world oil prices, since the country is one of the largest suppliers of raw materials.

From stability to fall

The day of February 18, 1983 became known in Venezuela as "Black Friday". It was then that the bolivar collapsed, displacing it from the leading positions in terms of stability. The devaluation continued, denominations grew zeros, increasingly devaluating the bolivar.

The currency reached the exchange point of 2150 bolivars for 1 dollar in early spring of 2005. Two years later, a decision was made on the denomination, and from the first day of 2008 the residents changed the money left on their hands for new signs in the ratio of 1000 to 1.

Strong currency for a strong country

Approximately this was the slogans of the 2008 reform, when the economy was tried to save by introducing a new "powerful" bolivar. At the same time, a new designation was adopted in the international currency list: VEF (short for "Venezuelan strong bolivar"). The currency was issued in the form of bills and coins: in 1 bolivare 100 centimo. Some suggest that the new name has a connection with the peso fuerte - coins, which were in use during ancient times.

After the currency was updated, it again became stable in relation to the monetary units of other countries. True, most of the stability is only visible, since the official and "black" bolivar courses are significantly different. For example, at the beginning of 2008, the official exchange rate was 2.15 bolivars for 1 dollar, and on the black market it was changed by 5.2 to 1. The authorities are struggling with the bifurcation of the market, even mentioning the second rate is banned, and exchange on it Punished.

Venezuelan strong (Fuerte bolivar) currency: exchange rate to the ruble, dollar and euro

The last significant fall in the rate occurred in mid-February 2016, when President Nicholas Maduro issued a 59% devaluation. After it, the official rate of the bolivar in relation to the dollar changed from 6.3 to 10.

The data given below are relevant at the end of April 2016.

1 USD = 9.95 VEF (1 Venezuelan bolivar give for 0.10 US dollars).

1 EUR = 11,17 VEF (1 Venezuelan bolivar give for 0.09 euros).

1 GBP = 14.36 VEF (1 Venezuelan bolivar is given for 0.07 pound sterling).

1 RUB = 0,15 VEF (1 Venezuelan bolivar give for 6.72 rubles).

1 UAH = 0.39 VEF (1 Venezuelan bolivar give for 2.55 hryvnia).

Although the currency is called "strong bolivar", after the withdrawal of previous bills prefix "Fuerte" is encountered less and less. In colloquial speech, locals almost always use a short name - bolivar.

Original currency: denomination and external features

Bolivar stands out against the backdrop of the usual dollars and euros. The first thing that strikes is the design of banknotes, the front side of which is made vertically, and the reverse side is horizontal. Venezuela politicians decorate the front of the bills, and behind them are birds and animals that inhabit the country.

Banknotes of 2, 5, 10, 20, 50 and 100 bolivars are issued, as well as 1 bolivar and 1, 5, 10, 12 ½, 25 and 50 centimo coins. 12 ½ centimo can also be called a feature of the Venezuelan currency. On one side, the denomination is depicted the face value, eight stars and the name of the monetary unit, and on the second the coats of arms and the date of issue are minted. Slightly different 1 bolivar: the coat of arms is placed on one side with face value, stars and year of release, and on the reverse side a portrait of Simon Bolivar is symbolically depicted.

Where to change money, what currency to take to Venezuela

Given that the rate of the bolivar is further linked to the US dollar, then the best way to travel is to take the American currency. Recall that in the country there are two courses: in official points where currency exchange is allowed, the bolivar will be sold at the appropriate rate established by the central bank of Venezuela under the decree of the government. This is relevant for banks, exchange points, hotels, shops, travel and transport agencies.

The exchange of money from hands at the rate of the black market threatens many troubles, as it is forbidden, and among the many swindlers. A good alternative is to pay in dollars in markets and in some private institutions. Quite willing to change the dollar taxi drivers and guides, offering a rate of one and a half to two times higher than the bank.

Bank cards are unfavorable doubly: firstly, when paying for them or withdrawing cash, the rate of the national bank is applied, and secondly, the commission is also counted at a rate of up to 10% of the amount used.

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