MercoPress. South Atlantic News Agency
Venezuela prints 20.000 Bolivars bills to match hyperinflation
At the official rate of 10 Bs per dollar, the 20,000 Bolivar note featuring liberation hero Simon Bolivar would be worth US$2000. In the street, it is worth just US$4.69. Venezuela's new currency will go into circulation on December 15 in denominations of 20,000, 10,000, 5,000, 2,000, 1,000 and 500 Bolivars, with 100-, 50- and 10-bolivar coins, the Venezuelan Central Bank (BCV) announced.
The government maintains 2 rates of exchange with the free market providing a third much higher rate. According to the government, it takes 10 bolivars to buy 1 US dollar, but that rate is only available to businesses approved by the government. A second exchange rate, called SIMADI, is currently trading at 666, but the government only provides a few million dollars via that exchange vehicle. The third rate is the free market for dollars, with the most utilized calculation coming from website dolartoday.com. They have the dollar costing 4.261 Bolivars.
At the official rate of 10 Bs per dollar, the new largest bill, the 20,000 Bolivar note featuring Latin American liberation hero Simon Bolivar would be worth US$2000. In the street, it is worth just US$4.69.
Until the new bills come out next week, the current largest bill is the 100 Bolivar note. It is worth just 2 cents at the free market rate.
Top Comments
Disclaimer & comment rules-
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Read all commentsIn these cases and counties, is it not true to say,
Dec 11th, 2016 - 09:16 pm +2the higher the denominations the more worthless it becomes,
im probable wrong so feel free...
And you notice that Argenzuela just released a new higher-denomination bill.
Dec 12th, 2016 - 03:30 am +2Tic-toc.
That 666 rate kind of scared me.
Dec 12th, 2016 - 02:28 pm +1Commenting for this story is now closed.
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