VES-Venezuelan Sovereign Bolívar
The currency of Venezuela has been in circulation since the end of the 18th century. The present currency unit in Venezuela is the Venezuelan bolívar. Venezuela, whose bolivar soberano (and predecessor bolivar fuerte) has been in free-fall for years, began to normalize de-facto dollarization and loosen currency restrictions for importers in 2019. Depreciation not only continued but accelerated. The purchasing power of Venezuelans paid in local currency is in a constant slide and minimum wages, although regularly increased, are rarely sufficient. The country’s foreign currency reserves are now at a 40-year low. International sanctions and legal complications from leadership undermine efforts to raise cash to support disease-fighting and monetary stabilization efforts.
Venezuela is currently suing the Bank of England for access to $1 billion in gold bars held there. The collapse of the domestic oil industry has made it difficult for the country to generate revenue and thus a severe shortage of gas. Despite the largest reserves of oil in existence, the country must import fuel and in June raise domestic gasoline prices, leaving behind long-standing fuel subsidies that make the resource practically free and cost the country billions each year.
Venezuelan Sovereign Bolívar rates:
1 USD = 1,552,540 VES (US dollar to Venezuelan Sovereign Bolívar).
1 EUR = 1,878,793 VES (Euro to Venezuelan Sovereign Bolívar).
It suffered significantly from inflation due to COVID19, so its value became record low in 2020. This currency is the lowest (cheapest) in the world.
The redenomination of the bolivar carries out on August 20, 2018. The main reason was the hyperinflation of around 830,000%, which kept increasing day by day.
Before the redenomination, 1 USD was worth ~248,487 VEF.
Old banknotes substitute with new ones with the rate of 1 new VES to 100,000 old VEF.
