Central Bank of Venezuela expands VEB 100-bill issue by 97%
Venezuelan authorities are pondering the creation of VEB 200 bills
In January 2008, Venezuelan authorities implemented a monetary reconversion and launched the so-called bolívar fuerte (strong bolivar), as a symbol of new times of prosperity and stability, yet bolivars are not enough to meet people's needs.
Official data shows that in 2012 the Central Bank of Venezuela (BCV) printed over 272 million bills of VEB 100 –a 97% increase compared to the number of bills printed in 2011 and three times more that the amount issued in 2010.
The family grows
In an economic climate where it all seems that the rise in prices will not stop, the central bank has begun to ponder the design of a new bill, with a face value of VEB 200 (USD 0.03).
BCV's sources explained that inflation continues high. In the short term, the number of VEB 100 bills circulating in the economy would increase to levels that will make the monetary distribution quite inefficient.
Models indicating when a country should issue bills of higher denominations in order to mirror the fall of the purchasing power due the impact of inflation show that Venezuela requires VEB 200 bills.
Should authorities fail to adopt this measure, in some two years, six out of every 10 bills circulating in the economy will be issued VEB 100 bills. Therefore, when people withdraw money from an ATM, they will need a high number of bills to buy the same number of things they can buy today.
María Fernanda Astudillo is a store analyst for Alimentos Polar working at the company's facilities in La Yaguara. At only 23 years of age, she has made a career in that company where she has worked for the last six years. Now, besides her responsibilities, which include overseeing shipping/receiving and warehousing of goods, she is taking part in the roundtable discussions among the other companies operating in the La Yaguara industrial park, the Government and the workers exploring possible ways of coping with the order to expropriate the land.