The E-Sylum:  Volume 10, Number 17, April 29, 2007, Article 25

VENEZUELA TO REVALUE CURRENCY

One currency-related topic we've neglected to cover is the upcoming 
currency revaluation in Venezuela, which will bring about the adoption 
of a new currency name and banknote issue. Arthur Shippee forwarded 
a New York Times article which unfortunately isn't available on the 
firm's web site anymore for free. Another article we found is an 
opinion piece criticizing the government for addressing only the 
current issues and not the underlying economy.

"After so much insistence on a supposed monetary reform, the government 
suddenly decided to adopt only a reconversion. In this case, it will 
divide all prices and salaries by 1,000 starting Oct.

"And starting Jan. 1, 2008, it will issue a new currency called the 
Bolivar Fuerte (Bs. F). But of measures needed to lower inflation 
and protect the value of this new currency, nothing is said. 

"Since 2001 the Hugo Chávez government had been insisting on the need 
for a monetary reform, which is much more complex, of greater range 
and more useful than any rudimentary currency reconversion.

"To the contrary, a reconversion simply means modifying the monetary 
denomination.

"That is, dividing the current value of all bills and coins, as well 
as prices and wages, by 1,000. In other words, three zeros will be 
eliminated from all the bills and coins in circulation, to be substituted 
by others with three fewer zeros. This, moreover, will include, according 
to BCV President Gastón Parra Luzardo, designs alluding to nationality, 
Venezuelan ethnic origins and its women."

"The reconversion will come into force Oct. 1, when all prices and 
wages must be simultaneously expressed in Bs. and in Bs. F, but it 
will not be until Jan. 1, 2008 when new bills will circulate in 
denominations of Bs.F 100, 50, 20, 10, 5 and 2; and coins of Bs. 
1,00, 0.50, 0.25, 0.125, 0.10, 0.05 and 0.01. Current bills in bolivars 
will continue to be used during a transition period whose duration has 
yet to be stipulated, when both currencies may be used. After this 
transition period, only the Bolivar Fuerte (Bs.F.) will be valid."

To read the complete article, see: Full Story

  Wayne Homren, Editor

	coinbooks.org Web

The Numismatic Bibliomania Society is a non-profit organization 
promoting numismatic literature. See our web site at coinbooks.org.

To submit items for publication in The E-Sylum, write to the Editor 
at this address: whomren@coinlibrary.com

To subscribe go to: https://my.binhost.com/lists/listinfo/esylum