Author Topic: Venezuela: Monetary reform from June 4th 2018  (Read 343 times)

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Offline Jostein

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Venezuela: Monetary reform from June 4th 2018
« on: March 25, 2018, 01:47:24 AM »
Nicolás Maduro has announced that the Central Bank of Venezuela will issue a new currency from the next June 4th. The new monetary unit will be called "Bolívar Soberano" and it will have a value of 1000 bolívares fuertes, so:

1,000 VEF = 1 VES

Will be issued just two coins of 1 bolívar and 50 céntimos, around 1 and 1/2 euro cent respectively ::). And banknotes of 2, 5, 10, 20, 50, 100, 200, 500 bolívares, no word "soberanos" appearing in any bill or coin.


http://sumarium.com/gobierno-abre-paso-a-un-bolivar-soberano-en-busca-de-mayor-poder-adquisitivo/

Poor Venezuela  :'(
"Change is the law of life. And those who look only to the past or present are certain to miss the future" - John F. Kennedy

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Offline Pabitra

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Re: Venezuela: Monetary reform from June 4th 2018
« Reply #1 on: March 25, 2018, 04:53:39 AM »
Bimetallic for face value of 1 Euro cent?
Either cost of manufacturing has really come down in Venezuela or all these European mints were making a fool of us for minting those plated steel coins at such high prices. ;D

Offline Jostein

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Re: Venezuela: Monetary reform from June 4th 2018
« Reply #2 on: May 30, 2018, 03:56:12 PM »
5 days before the currency reform, Nicolas Maduro has postponed the introduction of the currency by two months "at least"... ::)

https://www.elintransigente.com/mundo/2018/5/30/maduro-posterga-el-freno-al-cambio-de-la-moneda-venezolana-493444.html

I think that this reform have not sense, they should wait until the hyperinflation stop and then take off, not three, but four, five or six zeroes. Let see.

Poor Venezuelan people  :(
"Change is the law of life. And those who look only to the past or present are certain to miss the future" - John F. Kennedy

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Offline Jostein

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Re: Venezuela: Monetary reform from June 4th 2018
« Reply #3 on: July 10, 2018, 09:11:30 AM »
I doubt that the new series of coins and banknotes enters in circulation finally. The hiperinflacion in Venezuela reach the 200.00%, right now, 1 USD is about 3,500,000 bolívares fuertes (3,500 bolívares soberanos), taking in mind that the bigger banknote, 500 bolívares soberanos has today (one month after the introduction of the new currency) about 15 cents, maybe in August it would be even less.

I'm sorry for my Venezuelan brothers, they are living a tragedy...
"Change is the law of life. And those who look only to the past or present are certain to miss the future" - John F. Kennedy

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Offline Figleaf

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Re: Venezuela: Monetary reform from June 4th 2018
« Reply #4 on: July 10, 2018, 12:51:26 PM »
I'm sorry for my Venezuelan brothers, they are living a tragedy...

You are quite right, Jostein. Hyperinflation is a tragedy, all the more because it is a disease that is fully understood and the cure is known. The cause is also known. Severe economic mismanagement. The current and previous presidents spent far more than what they could afford and maintained a ruinous system of government determined prices. This was at a time that populism was still called nationalism. The tragedy is that the people of Venezuela believed their lies, now called fake news and elected such harmful leaders, but also that this scenario keeps on happening. When will we ever learn?

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

Offline Jostein

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Re: Venezuela: Monetary reform from June 4th 2018
« Reply #5 on: July 10, 2018, 01:21:00 PM »
You are quite right, Jostein. Hyperinflation is a tragedy, all the more because it is a disease that is fully understood and the cure is known. The cause is also known. Severe economic mismanagement. The current and previous presidents spent far more than what they could afford and maintained a ruinous system of government determined prices. This was at a time that populism was still called nationalism. The tragedy is that the people of Venezuela believed their lies, now called fake news and elected such harmful leaders, but also that this scenario keeps on happening. When will we ever learn?

Peter

Im completely agree with you Peter...When will we ever learn? I think that we will never do it. The history is a cycle, and the populism or nationalism allways take advance in bad moments (corruption, immigration, crisis...), the people belive the lies of politicians that call for "The State will provide you of free houses, public transportation, oil, money, food for you all" (left populism) or "We want our own, stronger and better countries, cause we are better than you" (right populism/nationalism).

Hope for a great future for Venezuela, it will arrive before than we expected.

By another hand, I think that is time to rethink the monetary reform and use the rate 1/10,000 or 100,000 instead 1/1,000. Lets see...

Fran
"Change is the law of life. And those who look only to the past or present are certain to miss the future" - John F. Kennedy

http://www.worldbcnews.com