Code VEF Plural bolívares fuertes | ⁄100 céntimo Symbol Bs.F. or Bs. | |
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Nickname bolo(s), luca(s), real(es) Banknotes Bs.F. 50; 100; 500; 1000; 2000; 5000; 10,000; 20,000 | ||
The bolívar fuerte (sign: Bs.F. or Bs.; plural: bolívares fuertes; ISO 4217 code: VEF) has been the currency of Venezuela since 1 January 2008. It is subdivided into 100 céntimos and replaced the original bolívar (sign: Bs.; plural: bolívares; ISO 4217 code: VEB) at the rate of Bs.F. 1 = Bs. 1,000 because of inflation.
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Bolívar
The bolívar was adopted by 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 4.5g 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 U.S. dollar at a rate of 3.914 bolívares = 1 U.S. dollar, revalued to 3.18 bolívares = 1 U.S. dollar in 1937, a rate which lasted until 1941. Until 18 February 1983 (now called Black Friday (Viernes Negro) 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 U.S. dollar at a fixed exchange rate of 1600 VEB to the dollar.
Bolívar fuerte
The government announced on 7 March 2007 that the bolívar would be revalued at a ratio of 1 to 1000 on 1 January 2008 and renamed the bolívar fuerte in an effort to facilitate the ease of transaction and accounting. The new name is literally translated as "strong bolívar", but also refers to an old coin called the peso fuerte worth 10 Spanish reales. The name "bolívar fuerte" is used to distinguish it from the older currency that was being used along with the bolívar fuerte. The official exchange rate is restricted to individuals by CADIVI, which imposes an annual limit on the amount available for travel.
Since the government of Hugo Chavez 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 2.15 bolívares fuertes to 2.60 bolívares for some imports (certain foods and healthcare goods) and 4.30 bolívares for other imports like cars, petrochemicals, and electronics. On 4 January 2011, the fixed exchange rate became 4.30 bolívares for 1.00 USD for both sides of the economy. On 13 February 2013 the Bolivar fuerte was devalued to 6.30 bolivars per 1 USD 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 Bolivar Fuerte from 6.3 Bs.F per 1 USD to 10 Bs.F per 1 USD.
Currency black market
The black market value of the bolívar fuerte has been significantly lower than the fixed exchange rate. In November 2013, it was almost 10 times lower than the official fixed exchange rate of 6.3 bolívares per U.S. dollar. In September 2014, the currency black market rate for the Bolivar Fuerte 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 is illegal to publish the "parallel exchange rate" in Venezuela. One company that publishes parallel exchange rates is DolarToday, which has also been critical of the Maduro government. Mercadolar is another website showing parallel exchange rates.
Bolívar
In 1879, silver coins were introduced in denominations of 1⁄5, 1⁄2, 1, 2, and 5 bolívares, together with gold 20 bolívares. Gold 100 bolívares were also issued between 1886 and 1889. In 1894, silver 1⁄4 bolívar coins were introduced, followed by cupro-nickel 5 and 12 1⁄2 céntimos in 1896.
In 1912, production of gold coins ceased, whilst production of the 5 bolívares 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 12 1⁄2 céntimos having last been issued in 1958. A nickel 5 bolívares 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 consisting of 10, 20, 50, 100 and 500 bolívar denominations.
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, Semi-Circled by the official name of the country and the year of its emission below.
Bolívar fuerte
Coins are in denominations of 1, 5, 10, 12 1⁄2, 25, 50 céntimos, and 1 bolívar. However, only the coins of 50 céntimos and 1 bolívar are widely used as most prices are rounded up to the next 50 céntimos. It will be noticed that there is a coin of 12 1⁄2 céntimos and a coin of 1 céntimo, but no coin of 1⁄2 céntimo. It is therefore impossible to give correct change for a purchase of (for example) 53 1⁄2 céntimos. This was, however, a largely academic problem as goods were priced (if they used the 1⁄2 at all) in 12 1⁄2 céntimo increments.
In December 2016, it was announced that coins of 10, 50, and 100 bolívares would enter circulation soon.