Venezuela eliminates smallest currency note
Venezuela following India's demonetization by eliminating 100s in the next 72 hours.
"Demonetization is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a change of national currency."
Nicolás Maduro, ordered Sunday to collect all the 100 bolivars, which is currently the largest denomination , to deal with alleged Colombian mafias that store paper money to "destabilize the economy" of the country.
During his weekly program In contact with Maduro , he said that there are national banks involved and that "the operator" who has directed the plan against the paper money of Venezuela is an NGO "hired by the United States Department of the Treasury . "
"I have decided to take out the circulation of 100 bolivars in the next 72 hours and give a prudent period for those who have 100 bolivars to declare it before the public bank and before the Central Bank (BCV)," he said.
He also warned that people who exchange large amounts of 100 banknotes in such banks will be investigated.
Meanwhile in India ATMS are running out of cash
Venezuelan President Nicolás Maduro signed a decree of economic emergency that orders the circulation of the highest value ticket in the country within 72 hours to end alleged "mafias" Which store millions of those tickets in Colombia.
"In use of my constitutional powers and through this economic emergency decree I have decided to take out the circulation of 100 bolivars in the next 72 hours," the president said in his television show 'Contacto con Maduro'.
The president said he ordered the move after Venezuelan authorities concluded an investigation that discovered billions of bolivars in 100-dollar bills held by international mafias directed from Colombia.
Maduro ordered "to close immediately all the terrestrial, air and maritime possibilities so that they do not return those notes that were taken" and also instructed that they take "letters in the affair" through diplomatic means.
"You stay with your scam on the outside, compadre (...) You have to beat the mafias! "Maduro, who asked" the maximum penalty "to all those responsible for that illegal" have the last name they have and have the ticket they have. "
In the midst of a serious economic crisis and high inflation rates, the measure is given before new banknotes and coins begin to circulate in the country with a value that multiplies up to 200 the ticket with the highest denomination today.
The government expects that to happen gradually from Thursday with new currencies of 50 and 100 and tickets of 500 bolivars, so that later the country of 1,000, 2,000, 5,000, 10,000 and 20,000 will continue to arrive in the country.
There are currently 2, 5, 10, 20, 50 and 100 bolivars in Venezuela. The 100 note barely allows you to buy a candy , while you require 50 banknotes of that denomination to pay for a hamburger.
That caused that in the last weeks the shortage of cash beat to the Venezuelans, since they are necessary an increasing amount of notes to pay goods, many in serious shortage.
José Guerra, former director of the Central Bank of Venezuela (BCV) and now an opposition deputy, said on Twitter that "to get rid of Bs 100 bills in such a short time, the BCV must have an equivalent amount in denominational bills ."
"The 100-bolivar note, which is worth approximately two cents, will be replaced by much larger bank notes. Venezuelans will have 10 days after the 100-bolivar bill is removed from circulation to exchange the notes at the central bank. In the wake of the 100-bolivar note's demise, six bank notes worth between 500 and 20,000 bolivars will be made available, and three new coins. One US dollar can buy up to 4,400 bolivars on the black market."
http://www.dw.com/en/venezuela-to-remove-the-100-bolivar-note-from-circulation/a-36730391
"The central bank said Sunday it will issue six new bills starting Dec. 15 worth between 500 and 20,000 bolivars. That's 200 times the biggest note currently in circulation -- the 100 bolivar. Hyperinflation means very little can be bought with 100 bolivars, which is officially worth 15 U.S. cents, or just 2 cents based on widely-used unofficial exchange rates."
As of 12/12/16 This Steemit Story is worth $0.07, more than the 100 Bolivar note.
Earlier this year, "Venezuela hiked gasoline prices for the first time in almost two decades and devalued its currency as President Nicolas Maduro attempts to address triple-digit inflation and the economy’s deepest recession in over a decade.
The primary exchange rate used for essential imports, such as food and medicine, will weaken to 10 bolivars per dollar from 6.3, Maduro said in a televised address to the nation. The government will also eliminate an intermediate rate that last sold dollars for about 13 bolivars and improve an alternative “free-floating, complementary” market that trades around 203 bolivars per dollar.
The devaluation will ease the drain on government coffers by giving state oil company Petroleos de Venezuela SA more bolivars for each dollar of oil revenue, while higher gasoline prices will reduce expenditure on subsidies. At the same time, the devaluation will probably force the government to raise the cost of staple foods such as rice and bread that most of the country now depends on to eat."
"The currency collapse means people are having to carry their money around in bags, rather than wallets."
"For example, a pair of pants is about 40,000 bolivars, which means you currently need to carry 400 bills of 100 bolivars each to be able to buy them," said Luis Oliveros, an economic professor at the Caracas Metropolitan University." NBC2
Children playing with stacks of hyperinflated currency during the Weimar Republic, 1922
Activo muy bien amigo
Thank you!
#nevernotes !!
Tienes toda la razón
This is why people have confidence in Bitcoin. Even before the Roman times most world leaders have destroyed them self's by over extending them self militarily and hyperinflating the currency to pay for it.
Black markets and their associated crime syndicates are almost entirely consequences of government prohibitions creating a lucrative and violent black market. Economic instability is almost always a consequence of governmental intervention in the economy. Of course governments want to shift the blame while finding new ways to exert power over their
victimscitizens...La idea de sustituir el dinero "cash" o efectivo, no es original, ni nueva, el punto es que debe ser una acción que sea complementada por medidas sustitutivas que tengan la finalidad de no crear conmoción entre la población, un ejemplo reciente de una acción de ese tipo es el caso de la India, donde ni siquiera se tomo en cuenta la vialidad de retirar los billetes de mayor uso entre la población hindu, esta decisión del gobierno de ese país se baso en una medida en defensa de la población, contra las mafias y grupos terroristas de alla, incluso con un sistema de cambio de los billetes sacados de circulación, extendido a varios días (creo que unos 15 días) y con un cono de nuevos billetes en nuevas denominaciones de rupias listo, en un país donde su economía es relativamente estable ... el resultado fue un total fiasco en si, y un fracaso para el gobierno hindu, ya que los mafiosos y terroristas quedaron con grandes cantidades de dinero de nueva denominación en sus arcas, en estos días, incluso se desato una ola de corrupción circunstancial muy notable donde varios políticos y funcionarios públicos, fueron atrapados negociando dinero con los jefes mafiosos, conclusión no sirve de nada, ese tipo de medida ,,, Ahora es al gobierno de Venezuela que se le ocurre tal tipo de medida, en la mayor de las sorpresas, en medio de una crisis financiero-económica-social de dimensiones realmente gigantescas, con una deuda interna bestial, con deuda externa peor aun, con suministros de comida y medicinas al mínimo, con niveles de inseguridad mas bien parecidos a una película de terror, y entonces se le ocurre retirar el billete de mayor denominación monetaria y de mas uso entre la población venezolana, curiosamente con la misma justificación que utilizo para hacer lo mismo que hizo el gobierno hindu, que podemos esperar entonces?, evidentemente es una medida criminal, pensada en la idea de acrecentar la agitación y violencia social, en este caso la idea es pescar en rio revuelto aprovechando los recursos del estado y hacerse de mayor poder coercitivo,.Realmente son unos hampones, no puedo decir otra cosa,
Nota: Estar de acuerdo con la sustitución de el dinero en efectivo por otras opciones mas lógicas y de mejor operatividad, no quiere decir que se tenga que estar de acuerdo con ese tipo de medida que acaba de tomar el gobierno de Venezuela.
El estado es enemigo de tu libertad
https://steemit.com/spanish/@sellergenius/medidas-gubernamentales-peligrosas-y-por-ende-criminales
_____________--llego la hora de apoyarnos todos los hermanos steemies venezolanos--_________________________________
Translated-> "The idea of replacing cash or cash is neither original nor new, the point is that it must be an action that is complemented by substitutive measures that have the purpose of not creating commotion among the population, a recent example of a Action of this kind is the case of India, where even the road to withdraw the most used bills among the Hindu population was not taken into account, this decision of the government of that country was based on a measure in defense of the population, Against the mafias and terrorist groups of there, even with a system of change of the banknotes taken out of circulation, extended to several days (I think about 15 days) and with a cone of new bills in new denominations of rupees ready, in a country Where its economy is relatively stable ... the result was a complete fiasco in itself, and a failure for the Hindu government, since the mafiosi and terrorists were left with large amounts of money of new denomination in their arks, in these days, even A very remarkable circumstantial corruption wave was unleashed where several politicians and public officials were caught up in negotiating money with the mafia bosses, conclusion is of no use, that kind of measure ,,, Now it is the government of Venezuela that comes up with such a type Of measure, in the greatest of surprises, in the midst of a financial-economic-social crisis of truly gigantic dimensions, with a bestial internal debt, with worse external debt, with food supplies and medicines to a minimum, with levels of insecurity Rather like a horror film, and then it occurs to him to withdraw the ticket of greater denomination monetary and of more use among the Venezuelan population, curiously with the same justification that I use to do the same thing that did the Hindu government, that we can wait Then ?, is evidently a criminal measure, thought of the idea of increasing agitation and social violence, in this case the idea is to fish in rio revuelto taking advantage of state resources and become more coercive power,. I can say something else,
Note: To agree with the substitution of cash for other more logical options and better operation, does not mean that you have to agree with that type of measure that has just taken the government of Venezuela.
The state is an enemy of your freedom"
Can anyone explain me the difference between VES and VEF?