Definition of VEB (Venezuelan Bolivar)’
VEB is the Currency abbreviation for the Venezuelan Bolivar, which was the Currency of Venezuela from 1879 to January 2008. The Venezuelan Bolivar is divided into 100 centimes and was awarded the symbol of BS
However, VEB is no longer used as the currency for Venezuela. Currency was translated into the Bolivar Fuerte at the WEF in 2008. The Bolivar Fuerte is translated into English as “strong bolívar”. Some nicknames for the Venezuelan currency Bolivar Bolo or bow.
The Venezuelan Bolivar was replaced with the WEF, 1000:1, because the Bolivar was so devalued due to inflation. VEF is the currency code, not the web, and the symbol, the BS remained the same.
The penetration of ‘VEB (Venezuelan Bolivar)’
The Venezuelan Bolivar was originally based on the silver standard, where 1 Bolivar is equal to 4.5 grams or 0.1575 ounces of pure silver, until 1910 when the gold standard was in force. In 1934, the Bolivar was in relation to the U.S. dollar in the amount of 3.914 Bolivar for 1 US dollar. The currency remained very stable compared to others in the region until the 1970’s, when rampant inflation began to undermine its value.
Limitations Of EBV
What was once a very strong currency, vef is a somewhat fragile system in the world market exchange rate. Most of the restrictions on the WEF has arisen because the Venezuelan government started to put strict control over their currency in 2003 in an attempt to limit human access to dollars. The government devalues the dollar and place a different amount in US dollars for import purchases of the business cheaper. This means that people do not have access to the same rate that the business is doing in order to purchase the necessary items. For example, the government rate of 10 bolivars per dollar for things such as food and medicines that were purchased outside of their country.
In addition, the government uses its own exchange rate on the taxes, expenses and deductions and foreign credit card fees. Overall, it hurts the Venezuelan economy.
Due to the high level of inflation in Venezuela, which led to a great demand for US dollars. Without access to the dollar, but the currency could rise further on the black market. For example, the unofficial black market rate was valued as high as 225,000 vef for 1 U.S. dollar.