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Venezuelan Currency Collapse

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Pillar of the Community
United States
4474 Posts
 Posted 12/12/2016  8:29 pm Show Profile   Bookmark this topic Add Lucky Cuss to your friends list Get a Link to this Message
The 100 Bolivar note, presently the country's largest denomination but having fallen unofficially to a mere 2˘ U.S. in value, is being demonetised on short notice. In explaining the move, the government is engaging in a campaign of misdirection and misinformation, blaming "hoarders" (like anything other than a large quantity of bills now worth so little could be useful) and claiming commerce utilizing them in and near neighboring Colombia is being conducted by various sorts of miscreants. The real issue, of course, is that staunchly socialist Venezuela's economy has devolved into a hot mess.

See: http://www.businessinsider.com/vene...ling-2016-12

Colligo ergo sum
Edited by Lucky Cuss
12/13/2016 09:57 am
Rest in Peace
United States
17900 Posts
 Posted 12/12/2016  9:01 pm  Show Profile   Bookmark this reply Add moxking to your friends list Get a Link to this Reply
Another oil exploiter exporter has nothing left to prop up their idiotic social system.
Valued Member
Canada
458 Posts
 Posted 12/12/2016  10:16 pm  Show Profile   Bookmark this reply Add Bigchip22 to your friends list Get a Link to this Reply
agree monopoly money is worth more than this money
Bedrock of the Community
United States
12062 Posts
 Posted 12/13/2016  02:24 am  Show Profile   Check spruett001's eBay Listings Bookmark this reply Add spruett001 to your friends list Get a Link to this Reply
It's a shame. I have a couple Venezuelan notes and hoped maybe some day they'd be sought after. After watching their economic decline, I'm discouraged unless I live to be 200 (maybe not even then).

This may be off topic but my stepmother's mother and grandmother relocated to the US from Caracas about 10 years ago and I'm very glad they made that decision!
In Memory of Crazyb0 12-26-1951 to 7-27-2020
In Memory of Tootallious 3-31-1964 to 4-15-2020

Oh that I was where I would be,
Then I would be where I am not,
Here I am where I must be,
Go where I would, I can not.
Pillar of the Community
United States
4474 Posts
 Posted 12/13/2016  09:27 am  Show Profile   Bookmark this reply Add Lucky Cuss to your friends list Get a Link to this Reply
Here's another article on this development:

https://www.theguardian.com/world/2...o-beat-mafia

Colligo ergo sum
Pillar of the Community
United States
992 Posts
 Posted 12/13/2016  12:03 pm  Show Profile   Bookmark this reply Add paxbrit to your friends list Get a Link to this Reply
I will confess to a lesson learned : Never buy a banknote from a socialist country until after the currency collapse.

My collection spreadsheet quite proudly shows I bought two of the 100 Bolivar notes for $38.40 apiece in 2007. Today, I can get them for about $2 on eBay, and less in quantity.
Bedrock of the Community
United States
11367 Posts
 Posted 12/13/2016  1:59 pm  Show Profile   Bookmark this reply Add CelticKnot to your friends list Get a Link to this Reply
Points taken, but then there are examples like Zimbabwe where certain notes are super hot ($100T, $10k, etc.) even though their currency has been demonetized. I'm waiting until the market cools off on some of those to add them to my collection.

Valued Member
Canada
113 Posts
 Posted 12/13/2016  8:01 pm  Show Profile   Bookmark this reply Add trikdoutcobalt to your friends list Get a Link to this Reply
I'm so glad I picked up my 100 trillion note a few years ago for $5 instead of trying to find one now
Valued Member
Canada
206 Posts
 Posted 12/13/2016  11:10 pm  Show Profile   Bookmark this reply Add OttawaVoyageur to your friends list Get a Link to this Reply
Wow! Central bank to only swap 'rational' amount of cash.
"We won't accept people arriving with trucks and carts to deposit 100-bolivar bills," Merentes said at a news conference late Tuesday.https://www.bloomberg.com/news/arti...urrency-swap

Pillar of the Community
United States
4474 Posts
 Posted 12/13/2016  11:27 pm  Show Profile   Bookmark this reply Add Lucky Cuss to your friends list Get a Link to this Reply

Quote:
"We won't accept people arriving with trucks and carts to deposit 100-bolivar bills," Merentes said at a news conference late Tuesday.


Keeping in mind that 50,000 100 Bolivar notes only translates to about $1,000 US at this point, it'd seem that widespread invalidation of the notes that the government itself has printed and distributed and consequently near universal impoverishment would be the thinly veiled goal.

Colligo ergo sum
Bedrock of the Community
United States
11367 Posts
 Posted 12/14/2016  12:53 am  Show Profile   Bookmark this reply Add CelticKnot to your friends list Get a Link to this Reply

Quote:
Keeping in mind that 50,000 100 Bolivar notes only translates to about $1,000 US at this point...

So for those mathematically and perspectively-challenged like me, 1 US cent is worth 5,000 Bolivars. Yikes.


Quote:
I'm so glad I picked up my 100 trillion note a few years ago for $5 instead of trying to find one now.

I paid closer to $15 for mine about 4 years back. Still a good deal in today's market. I still have to get the 2008 10k hyperinflation note. That one is a pain to find and is going for $100 in UNC condition. I'll be waiting.

I find myself torn about collecting notes like these, knowing what people are (or were) going through. I know I personally didn't have anything to do with the situation, but...
Bedrock of the Community
United States
12062 Posts
 Posted 12/14/2016  02:08 am  Show Profile   Check spruett001's eBay Listings Bookmark this reply Add spruett001 to your friends list Get a Link to this Reply
What I'm seeing now the Bolivar is worth about $0.10 US and I think the 5M Bolivars to US $1000 equates to twice that, $0.20 per Bolivar. I see that it has been on the rise since at least 2012 where it was just over $0.04 per US dollar.
In Memory of Crazyb0 12-26-1951 to 7-27-2020
In Memory of Tootallious 3-31-1964 to 4-15-2020

Oh that I was where I would be,
Then I would be where I am not,
Here I am where I must be,
Go where I would, I can not.
Valued Member
Canada
206 Posts
 Posted 12/21/2016  10:17 pm  Show Profile   Bookmark this reply Add OttawaVoyageur to your friends list Get a Link to this Reply


https://www.wsws.org/en/articles/20...ene-d21.html

Who would have thought this mastermind plan could go wrong!!

Please forgive me for being sarcastic. I truly feel for the Venezuelans struggling with shortages of food, medicine and many other essential things.





Pillar of the Community
United States
4474 Posts
 Posted 12/22/2016  10:01 am  Show Profile   Bookmark this reply Add Lucky Cuss to your friends list Get a Link to this Reply
OttawaVoyageur - That's a very interesting article, not the least for being so negative and critical and yet still appearing on a website promoting worldwide socialism!

I do note that it is asserted there that a 100 Bolivar note is worth 14˘ U.S. - I think it's important to differentiate between the official exchange rate, and what that note's buying power has actually fallen to. I'll bet the 2˘ figure I've seen in other articles is closer to being realistic.

Colligo ergo sum
Valued Member
Canada
206 Posts
 Posted 12/31/2016  05:56 am  Show Profile   Bookmark this reply Add OttawaVoyageur to your friends list Get a Link to this Reply
Extracts from a recent NYtimes article:

''What comes next?

On Thursday, President Maduro appeared again on state television to announce a second extension of the life of the 100-bolívar bill for an additional 18 days, until Jan. 20. With luck, the new bills, ranging in value from 500 to 20,000 bolívars, will have been made widely available before then.

But printing larger denominations doesn't help reverse an episode of hyperinflation. And Venezuela's on a ticking clock. Because the rapidly devaluing bolívar is not widely accepted outside the country's borders, in order to continue to borrow the money required to keep the nationalized oil industry pumping the government must pay its foreign debts with dollars. According to data from the Central Bank of Venezuela, the government held $43 billion in foreign reserves at the beginning of 2009. Only $11 billion is left today.''
Pillar of the Community
United States
4474 Posts
 Posted 01/04/2017  1:40 pm  Show Profile   Bookmark this reply Add Lucky Cuss to your friends list Get a Link to this Reply
The political ramifications pf Venezuela's impoverishment would seem to be undergoing amplification.

See: http://www.foxnews.com/world/2017/0...-homily.html

Something's got to give, and sooner rather than later, I'd think.

Colligo ergo sum
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