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Author Topic: VENEZUELA: New money soon?  (Read 2030 times)

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Offline Bimat

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VENEZUELA: New money soon?
« Reply #30 on: December 30, 2016, 10:20:57 AM »
The deadline to use old 100 Bolivar banknotes has been extended again: Now you can use them until January 20, 2017.

Aditya
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Offline Bimat

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VENEZUELA: New money soon?
« Reply #31 on: January 12, 2017, 09:07:29 AM »
Venezuela shuts Colombia border as crisis escalates

Published 01/11 2017 10:28PM
Updated 01/11 2017 10:28PM

NEW YORK (CNNMoney)

Venezuela just made it harder for its citizens to escape the country's cash crisis.

President Nicolas Maduro announced Monday night that he's closing the country's border with Colombia for 72 hours as Venezuelans rush to exchange bills before they become invalid later this week. He accused "mafias" of moving Venezuelan money into Colombia.

It's the latest twist in a crisis that symbolizes Venezuela's severe economic depression, which is having a brutal impact on its citizens' lives.

The Venezuelan government said in a statement that shutting the border with Colombia was necessary "to counteract the criminal attacks against our currency."

Some Venezuelans are going to border towns in Colombia to exchange their currency, the bolivar, for U.S. dollars or to spend their money -- while they still can -- in Colombia where food, toiletries and other basics are plentiful.

The biggest bill in Venezuela is the 100 bolivar note. On the official, government rate, it's worth about 15 U.S. cents. On the more popular, unofficial exchange rate, the 100 bolivar bill is worth a mere 2 cents. Venezuelans have been weighing stacks of cash to pay for basic items instead of counting individual bills.

To make life a little easier, Maduro's government announced it will start printing six new bills worth between 500 and 20,000 bolivars. Still, the biggest bill on the unofficial rate is still only worth $5.

On Sunday, Maduro's administration announced it will withdraw all 100 bolivar notes and replace them with coins of the same face value within 72 hours. The new bills and coins are expected to debut Thursday.

Maduro says his emergency decree to swap out the bolivar notes for coins on such short notice was aimed at "mafias" he says were smuggling bolivars outside Venezuela.

Swapping out the new bills for old ones within days has forced Venezuelans to deposit their bills at local banks or exchange them as quickly as possible so as to not have worthless paper by the end of the week. It's a sign of the times.

Venezuela is officially suffering through hyperinflation -- the rate of inflation has risen by 50% in the past 30 days, according to a report published Monday by Steve Hanke, an economics professor at John Hopkins University who is an authority on hyperinflation.

The International Monetary Fund forecasts that inflation in Venezuela next year will exceed 1600%.

Food shortages continue to devastate Venezuelans. While food has become more available in certain parts of the country because the government isn't enforcing price controls, it's often extremely expensive for Venezuelans to buy normal items.

Simon Rojas has suffered through Venezuela's economic crisis for years. A 25-year old recent college graduate in Caracas, the capital, Rojas says the government's new bills won't solve anything.

With the currency in free fall, Rojas is now trying to spend his 100 bolivar notes before the 72-hour deadline passes -- and before it loses more value.

"He's selling this decision as a solution, but it's never worked before," Rojas said of Maduro, noting other hyperinflation crises like Zimbabwe's. "I'm trying to spend bolivars, not save them. There isn't an incentive to save."

Source
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Offline Bimat

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VENEZUELA: New money soon?
« Reply #32 on: January 23, 2017, 04:42:40 AM »
Maduro sacks the head of Venezuela's Central Bank

Posted 23 Jan 2017 04:38

CARACAS: President Nicolas Maduro on Sunday (Jan 22) announced the firing of Venezuela's Central Bank chief, amid a deep economic crisis worsened by the recent bungled release of bigger denomination banknotes.

Speaking on his weekly television program, Maduro announced that Central Bank head Nelson Merentes - who has been under intense pressure over the banknote debacle - has handed in his resignation.

"I would like to thank Nelson Merentes for all the effort he has made at various battlefronts, but I want us to initiate a new stage in the development of the Central Bank of Venezuela," the left-wing Venezuelan leader declared, announcing that he has tapped economist Ricardo Sanguino to succeed Merentes.

He said he has great confidence in Sanguino, 73, a longtime political player who has headed the Budget Committee in Venezuela's National Assembly among other key posts.

Maduro did not directly mention the currency crisis, but speculation has been rife in recent days that the botched notes release could be the final straw, costing Merentes his head.

Venezuela is considered to have the highest inflation rate in the world, making its smaller banknotes virtually worthless.

The 100-bolivar note had been the highest denomination until recently, but was worth only a few US cents.

Caracas released new, bigger denomination banknotes last week to aid citizens struggling with unwieldy wads of cash in an economic crisis.

The notes were meant to be released in December but got delayed, causing chaos as Venezuelans queued up anxiously to change their bills.

Automatic cash machines, in another snafu, were not yet dispensing the new money because they had not been programmed to handle the bigger notes.

Inflation in Venezuela is projected to soar to a mind-boggling 1,660 per cent this year, according to the International Monetary Fund.

- AFP/ec

Source: Channel News Asia
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Offline Bimat

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VENEZUELA: New money soon?
« Reply #33 on: February 18, 2017, 07:30:52 AM »
Venezuela Postpones Withdrawal of 100-Bolivar Notes

06:12 18.02.2017

Venezuela has one again delayed the withdrawal of the 100-bolivar banknotes from circulation, Vice President of Venezuela Tareck Zaidan El Aissami has announced.

MEXICO CITY (Sputnik) – The withdrawal order was first time delayed by Venezuelan President Nicolas Maduro last December soon after the decision to get rid of the highest-denomination banknote was made.

"President Nicolas Maduro has signed a decree for an extension of the legal tender of banknotes of 100 bs. [bolivars], until March 20," El Aissami wrote on Twitter on Friday.

In December, Maduro ordered the government to withdraw the highest-denomination banknote, worth 100 bolivars, from circulation as a measure against Venezuela's currency smuggling. The president said criminals were hoarding the banknotes in neighboring Colombia and the move was designed to prevent the notes from being taken back into Venezuela.

Maduro declared an economic emergency in Venezuela in January. The country’s opposition has blamed the president for the economic crisis in the country, which has seen multiple mass protests amid shortages of food, goods and services.

Source: Sputnik News
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Offline Bimat

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VENEZUELA: New money soon?
« Reply #34 on: March 01, 2017, 04:31:50 AM »
Venezuela Receives Lot of Banknotes of New Monetary Unit

Caracas, Feb 28 (Prensa Latina) Manuel Perez Urdaneta, Vice Minister of Security and Citizen Prevention, has confirmed today the arrival to this capital of the ninth cargo of the monetary unit''s banknotes in force in Venezuela since December.

Coming from the island of Malta, we have received this morning a lot with denominations of 2,000 and 20,000 bolivars, the official said in statements to the state TV channel Venezolana de Television.

They are 6.1 million pieces of 2,000 and 25.6 million of 20,000, he said.

According to Perez Urdaneta, the process of market injection of each of the banknotes and coins that are in circulation in the South American nation continues timely and calm.

These banknotes have security features including a watermark and electrolyte, perfect registration, micro-text, security thread, watermark for visually impaired people and fluorescent type printing.

The BCV announced in December 2016 the entry into circulation of banknotes of 500, 1,000, 2,000, 5,000, 10,000 and 20,000 bolivars, whose graphic characteristics are similar to the monetary unit in force since 2008.

A cargo of banknotes of the denomination of 1,000 bolivars, equivalent to 30 billion bolivars (about $3 billion USD) arrived in the country on Wednesday, February 24th.

The new banknotes are 500, 1,000, 2,000, 5,000, 10,000 and 20,000 bolivars, while the coins are 10, 50 and 100.

Source: Prensa Latina
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Offline Figleaf

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Re: VENEZUELA: New money soon?
« Reply #35 on: March 01, 2017, 11:33:38 AM »
FWIW, the photo shows an aircraft from Belarussia. I can't see enough of the fuselage to identify the plane. However, it is probably an Ilyushin, maybe a 62M. The connection to Malta is not immediately clear...

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Bimat

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VENEZUELA: New money soon?
« Reply #36 on: March 18, 2017, 06:17:21 AM »
Validity of the 100 Bolivar notes has been further extended till April 20.

Aditya
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Offline Bimat

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VENEZUELA: New money soon?
« Reply #37 on: May 21, 2017, 01:37:37 PM »
Venezuela Again Delays Eliminating 100-Bolivar Notes

CARACAS – The government of Venezuela said on Friday that the 100-bolivar banknote, which was due to go out of circulation in December, will now stay valid for one more month due to delays in the production of new bills.

Venezuelan Vice President Tareck El Aissami took to Twitter to announce that President Nicolas Maduro had decided to extend the validity of the 100-bolivar note, which is worth about 14 US cents, until July 20.

El Aissami said the Central Bank of Venezuela and other relevant authorities have been informed of the decision.

He added that the national banking system will guarantee “full circulation of the bill” at all its branches and ATM machines.

This is the seventh time that the government has extended the date to get the bill out of circulation.

Maduro ordered demonetization of the bill on Dec. 11, 2016, saying it will lose value within 72 hours, which led to it being deposited in large quantities nationwide.

The opposition called the measure irresponsible after three people lost their lives in the deposit process, which saw protests and looting.

Maduro has said that new bills of 500, 1,000, 2,000, 5,000, 10,000 and 20,000 bolivars will be available through ATMs and that the process would be completed in May.

He also asked his cabinet, supervising the operation, to avoid any delays.

Source: Latin American Herald Tribune
Caution. The low-hanging fruits are still there maybe for a reason.