Venezuelan Bolivar (VEB): Overview, History, FAQ

What Was the Venezuelan Bolivar (VEB)?

The Venezuelan bolivar (VEB) was the country’s currency from 1879 to January 2008. It was later replaced by the bolivar fuerte (VEF) from 2008-2018. In 2018, the bolivar soberano replaced the VEF and in 2021, a new bolivar currency was issued with six fewer zeros to address inflation. Some nicknames for the Venezuelan bolivar are the bolo and the luca.

Key Takeaways

• The VEB was the former currency of Venezuela, replaced by the VEF in 2008 and the bolivar soberano in 2018.
• Venezuela’s currency has faced instability and hyperinflation due to economic and political troubles.
• In 2018, the government proposed an oil-backed cryptocurrency called the petro.
• Venezuelans primarily use USD, euros, bartering, and cryptocurrencies for transactions.

Understanding the Venezuelan Bolivar

The VEB was heavily devalued, and a new currency was introduced in 2018 with reduced zeros to combat hyperinflation. Initially valued based on the silver standard, it later became fixed to the USD at a rate of 3.914 bolivar to 1 USD. The VEB currency code is still frequently used, along with VES.

In the 1970s, inflation led to the introduction of the bolivar fuerte (VEF) currency.

VEB and Venezuela’s Black Friday

Venezuela faced currency devaluation and government insolvency, leading to the introduction of the VEF currency.

The VEF faced limitations due to strict currency controls, hindering access to USD.

The bolivar soberano (VES) replaced the VEF in 2018.

Inflation led to increased demand for USD, resulting in black market currency trading.

The Petro

In 2018, the Venezuelan government proposed the petro, an oil-backed cryptocurrency. However, it has faced skepticism and limited adoption.

Cryptocurrencies like bitcoin and ether are widely used in Venezuela.

Which Currency Does Venezuela Use?

Venezuela uses the bolivar as its currency. However, due to hyperinflation, citizens rely on other currencies and cryptocurrencies for transactions.

Is Venezuelan Currency Worthless?

Venezuela’s currency has become practically worthless due to hyperinflation. Citizens primarily use USD, euros, cryptocurrencies, and bartering.

Did Venezuela Stop Using Bolivars?

Although Venezuela has not completely ceased using bolivars, the currency’s hyperinflation has rendered it nearly worthless. Other currencies and cryptocurrencies, such as USD, euros, bitcoin, and ether, are predominantly used for transactions.