Caracas, December 5, 2016 (venezuelanalysis.com) – Venezuela’s Central Bank (BCV) has announced that it will progressively begin to circulate nine new higher denomination notes and coins as of December 15.
According to a statement issued Sunday, the new Bolivar notes will include 500, 1,000, 2,000, 5,000, 10,000 and 20,000 bills, while the new coins will be 10, 50 and 100 Bolivar denominations. Venezuela’s current highest value banknote is 100 Bolivars.
“It will make payment systems more effective, it will facilitate commercial transactions and minimise the cost of production, replacement banknotes and the transport of monetary contributions,” reads the BCV statement.
The central bank also confirmed that the new banknotes will co-exist alongside current denominations. Its headquarters in Caracas and Maracaibo will be responsible for progressively distributing the new notes, the statement reports.
Triple digit inflation and the steady devaluation of the Bolivar has made cash transactions increasingly unviable in Venezuela, where the daily maximum withdrawal limit now barely covers the cost of two packets of rice.
Venezuelan citizens have increasingly begun to rely on card payments to pay for goods and services to avoid carrying around wads of cash to make simple purchases.
It is hoped that the circulation of the new bills will help to improve the efficiency of the country’s monetary system.