2017-02-13 Mon

Last month, Venezuela officially announced that new 500 to 20,000 bolívars notes would be issued to replace the old 100-bolívar bill. This has been a measure to tackle hyperinflation. Also, officials stated that organised crime groups were illegal storing up of the 100-bolívar bills.

The 100-bolívar bill has a black market rate of 2.8 American cents and the largest of the bills is worth about $5.60. But the new 500-bolívar bills and had run out by 2 p.m, on the day they were introduced. Many people started looting the banks and also started burning 100-bolívar notes, thinking that they were not of any value.

The president later rolled back his decision and kept the 100-bolívar notes in circulation. He blamed his opposition party and also the United States who did not allow cargo planes with the new bills from reaching Venezuela. The notes will continue to be in circulation until 20th February.

Some bank customers were unaware of the new notes being introduced. Also, even though the announcement was made in December, the new notes bore the date 18th August 2016.