José Guerra, member of the Finance Committee of the Venezuelan National Assembly, has proposed overstamping the current notes of 5,000 (VEF5,000.1A and.1B); 20,000 (VEF20,000.1A and .1B) and 100,000 bolívares fuertes (VEF100,000.1A and .1B) to raise their value to 500,000; 2 million and 10 million bolívares fuertes (= USD 0,50; 2.oo and 10.00 at current free market rates). These notes, the largest ones in use, are worth now half, two and ten U.S. cents respectively.
With the bulk of the currency being literally worthless, there is a dire scarcity of money in circulation. New banknotes, which were to be issued next Monday, and now seem to be delayed by act least 90 days, are also of low value, with the largest 500 bolívares soberanos worth 50 U.S. cents, and probably less by the time it is issued, the scarcity will continue.
©2018 Monetary Research Institute
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