The Venezuelan Bolivar (VEF) is the official currency of Venezuela.
The current bolivar, known as the “Bolivar Soberano” (Sovereign Bolivar), was introduced on August 20, 2018, as a replacement for the “Bolivar Fuerte” (Strong Bolivar) at a rate of 100,000 VEF to 1 VES.
The new currency was introduced to tackle hyperinflation and simplify financial transactions.
History
The bolivar has a long history in Venezuela, with its first iteration, the “Bolivar Venezolano” (VEB), introduced in 1879.
The currency was named in honor of Simón Bolívar, a military and political leader who played a crucial role in Latin America’s struggle for independence from the Spanish Empire.
In 2008, the Bolivar Fuerte (VEF) was introduced to replace the Bolivar Venezolano at a rate of 1 VEF to 1,000 VEB, as a response to high inflation.
The Bolivar Soberano (VES) replaced the Bolivar Fuerte in 2018 due to hyperinflation.
Central Bank
The Central Bank of Venezuela (Banco Central de Venezuela) is responsible for issuing and managing the country’s currency, implementing monetary policy, and overseeing the stability of the financial system.
Denominations and Subdivisions
The Venezuelan Bolivar Soberano (VES) is subdivided into 100 céntimos.
However, due to hyperinflation, the use of céntimos is now obsolete.
Banknotes are available in denominations of 2, 5, 10, 20, 50, 100, 200, and 500 VES, while coins are issued in denominations of 50 céntimos and 1 VES.
Economy
Venezuela’s economy is primarily based on the petroleum sector, which accounts for a significant portion of the country’s GDP and export earnings.
The economy has faced numerous challenges in recent years, including hyperinflation, food shortages, and a decline in oil production.
The government has implemented various measures, such as currency devaluations and price controls, to address these issues. However, the country continues to face significant economic challenges.
Summary
The Venezuelan Bolivar is the official currency of Venezuela and has undergone several iterations in response to high inflation and hyperinflation.
The Central Bank of Venezuela manages the currency and is responsible for maintaining the stability of the financial system.
Venezuela’s economy is heavily reliant on the petroleum sector, and the country has faced numerous economic challenges in recent years.