An article published today by Noticiero 52 in Venezuela mentions some interesting facts about the conversion to “bolívares soberanos” which was supposed to take place by August 4.
The change may be postponed to mid-August, according to people involved in the process.
Lately the Government stayed relatively silent about the “reconversion”, when it would be logical to increase the publicity campaign as the announced change date is 3 weeks away.
The Banco Central declared that they have a supply of the new banknotes in their vaults, but these were not yet supplied to the commercial banks.
A proposal has been presented to the Banco Central de Venezuela to modify the reconversion by cutting six instead of 3 zeros, (At today’s parallel rate of about 3.4 million bolívares fuertes per U.S. dollar, the largest of the new notes would be worth only some 15 U.S. dollar cents; therefore making the face value of the new family of notes lower than the printing cost).
©2018 Monetary Research Institute.
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