Evolution in Venezuelan Currency Part II: The Bolivar Fort

Cordial greetings to all who read and support my publications. Continuing with this topic today I want to write the second part. I would say that it is the breaking point of our economy because from this point everything goes from a state of scarcity to a state of crisis in which there is not only a lack of food but also of medicine, education, security and any decent public service that every human being under any earthly government should be able to enjoy.

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El Bolívar Fuerte Bs.F

Because the numbers were growing this was the first attempt to hide inflation, the method consisted in removing 3 zeros from the currency to form a strong Bolivar, so the relationship was 1BsF=1000Bs. In this way the numbers were lowered for a time however the currency 1BsF. circulating already lacked value, many were needed to buy 1Kg of meat and although it was still possible to live in a "comfortable" way in the country already began to scarce some products.

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The point that concerns us is that these bills were devalued more and more at the same time that productive companies were expropriated and the products of the basic food basket were scarce. Cpn the arrival to the power of the current president the denominated "economic war" seems that it intensified because the chaos took hold of the society nevertheless the ideas of the government to placate the things only worsened them more, such was the case in which the advance of cash in businesses that exercised this practice in an illegal way was prohibited charging a commission of 10%. Withdrawing cash from banks was an odyssey, which is why people used the cash advance joker to pay the commission, when the government decrees this practice as prohibited and does not establish mechanisms for banks to deliver cash to society normally what I will call "the cash crisis" arose.

The strategy implemented was that the products in the basic basket had a price if you paid in cash and one of up to 400% if you paid with a debit or transfer card. Many began to buy cash paying up to 300% of what they received and given the lucrative nature of this destructive business even to managers. Many began to buy cash paying up to 300% of what they received and given the profitability of this destructive business even bank managers began to limit to a very small amount the amount of cash delivered to the ordinary citizen to create queues at banks and force people to buy cash.

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The last vain attempt to maintain the circulation of cash was the issuance of the 100,000 BsF note that instead of producing improvements only brought a much higher inflation, scarcity and cash trade did not cease and inflation did not stop, until now all efforts have been in vain and although this new note was just being issued very soon began to speak of a new monetary cone.

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