Venezuelan bolívar

The bolívar was introduced in 1879, replacing the venezolano at a rate of 1 bolívar = 5 venezolanos, and was initially pegged to the French franc. It remained relatively stable until the mid-20th century, but chronic inflation led to three major redenominations. In 2008, the bolívar fuerte (BEF) replaced the original bolívar at 1:1,000. In 2018, the bolívar soberano (VES) replaced the fuerte at 1:100,000. In 2021, the bolívar digital (VED) was introduced, removing six zeros from the soberano, making 1,000,000 old bolívares equal to 1 new bolívar.

Current coins are issued in denominations of 1, 5, 10, 25, 50 céntimos and 1 bolívar, though their use is limited due to inflation. Banknotes in circulation include 5, 10, 20, 50, 100, 200, and 500 bolívares, with the 1,000-bolívar note introduced in 2023. The notes feature prominent Venezuelan historical figures, such as Simón Bolívar, and national landmarks. The Central Bank of Venezuela has also issued commemorative notes and polymer notes in the past, but the current series is printed on cotton paper.¹

Venezuela has experienced one of the highest inflation rates in modern history, with the bolívar losing value rapidly. Hyperinflation peaked in 2018, with an annual rate exceeding 1,000,000%. This has led to the widespread use of the US dollar for transactions, especially in real estate and retail, while the bolívar remains the official accounting unit. The government has implemented price controls and exchange rate interventions, but these have often exacerbated shortages and black-market activity. The bolívar's depreciation has also driven the adoption of cryptocurrencies, such as Petro, though with limited success.²

The bolívar was originally subdivided into 100 céntimos, but due to inflation, céntimo coins are now virtually worthless and rarely used. The 2008 redenomination introduced the name 'bolívar fuerte' to distinguish it from the old currency, but the 'fuerte' was dropped in 2018. The 2021 redenomination was initially called 'bolívar digital' because it was intended to be used primarily in electronic transactions, but physical notes were later issued. A notable quirk is that the 2018 banknote series included a 1,000,000-bolívar note, which was worth less than a US dollar at the time. The Central Bank has also issued a 100-bolívar coin, but it is rarely seen in circulation.

Redenomination

The process of replacing a currency with a new one by removing zeros, often due to inflation.

Hyperinflation

Extremely rapid and out-of-control inflation, typically exceeding 50% per month.

ISO 4217

International standard for currency codes, such as VES for the bolívar soberano.