Venezuelan Bolívar

• Country: Venezuela
• Currency: Bolívar
• Alias: Venezuelan bolívar
• ISO 4217 CODES: VEB/862
• Symbol: Bs

The bolívar is the national currency of the Bolivarian Republic of Venezuela, a South American nation with a population for more than 25 million citizens. The currency was named in honor of Simón Bolívar, a prominent figure in the liberation of Venezuela and other South American colonies from Spanish rule in 1821. Venezuela’s economy is largely dependent upon the export of crude oil and refined petroleum products, though efforts are being made the government to diversify the country’s revenue streams, particularly in the agricultural and mining sectors. Venezuela’s Central Bank adopted a peg to the U.S. dollar in 2003 in order to further strengthen the bolívar.

Background of the Venezuelan Bolivar

Up until the 19th century, Venezuela’s economy had been driven largely by agriculture and limited manufacturing capabilities. The country experienced a strong economic resurgence beginning in 1912 when vast oil deposits were discovered. Petroleum exports continue to be the prime source of Venezuela’s national income.

Venezuela’s economy experienced a severe recession in 2003 as a result of declining oil prices and a labor action which crippled the national petroleum industry. The Caracas-based government subsequently imposed new currency controls to prevent further deterioration, and went so far as to temporarily suspend all foreign currency trading in early 2003. When trading resumed a month later, the bolívar was pegged to the U.S. dollar.

More recently, the administration of President Hugo Chavez has voiced strong opposition to Venezuela’s potential participation in a proposed “Free Trade Area of the Americas.” This accord between North, Central and South American nations was first proposed in 1995 to promote international commerce between signatories, though many Venezuelans fear that participation will lead to undue influence by the United States in domestic affairs. Though the bolivár would most likely be strengthened as a result of any free trade agreements,

The bolivár is divided into 100 céntimos, though the smallest denomination of coin in circulation is 10 bolívares. Denominations for coins are 10 Bs, 20 Bs, 50 Bs, 100 Bs and 500 Bs. Denominations for notes are 500 Bs, 1,000 Bs, 2,000 Bs, 5,000 Bs and 10,000 Bs.