Venezuela: Coins Issued and Used

The bolívar went off the gold standard in 1930. In August 1934 the official rate was fixed in terms of the US dollar at 3·915 bolívares per, adjusted to 3·18 per April 27, 1937. Gold coin disappeared from circulation.

Banco Central de Venezuela was created by Congress on July 13, 1939 (effective September 8). It began operations in October 1940, at which time there were six note-issuing banks (Banco de Maracaibo, Banco de Venezuela, Banco Caracas, Banco Comercial de Maracaibo, Banco Venezolano de Credito, and Banco Mercantil y Agricola). The notes of the private banks were withdrawn during 1941 (monetary law of July 22, 1941).

A system of multiple exchange rates was adopted July 23, 1942, with an official rate of 3·35 per US$1, which became its parity with the International Monetary Fund in 1947. A system of multiple exchange rates was adopted in 1948, the rates ranging from 3·09 to 4·80 per US dollar, and there was a black market. The black market reached a low of 4·98/US$1 in May 1961. IMF parity was revised to 4·45 per US dollar January 18, 1964.

The various monetary laws from July 12, 1945 on continued to define the monetary unit as the gold bolívar (bolívar de oro) of 290.323 mg pure gold. It was only October 30, 1974 that the monetary unit was defined simply as "bolívar", with no reference to gold.

The bolívar was a very stable currency for a decade after 1964, but by the early 1980s it was in serious trouble. A peg to the US dollar at 14·50 bolívares did not halt the slide. Neither peg, nor crawling peg, nor managed float could keep the bolívar exchange rate under control. It went from 47 per dollar in 1990 to 177 in 1995, to 680 in 2000, and to 2090 in 2005.

The monetary law of June 2, 1887 made gold an unlimited legal tender. Full-bodied silver (i.e., 0·900 fine) was legal tender to 500 bolívares, subsidiary silver (0·835 fine) to 50 bolívares, and nickel and copper to 20 bolívares. The bolívar was defined as equal to the gold franc or peseta, 290·322 mg fine gold (par: 5·18 per US dollar and 25·22 per pound sterling). The gold standard came into full operation in 1910.

The decade (1888–1899) after the fall of Guzmán Blanco was one of civil strife that exhausted the national treasury. The urgent need for small change in 1893 was met by ordering small denomination silver from Paris and then nickel coins from Berlin. The coins ordered from Berlin, May 25, 1896, were the same type, diameter, and weight as thse of 1876–1877, only the denomination differing, the new 5 céntimos being equal to the old centavo (and it was often called a centavo).

Restrictions were placed on gold export in 1914, but banknotes never ceased being convertible into gold domestically. After war began, the exchange rate on New York depreciated slightly, but soon went to a premium. In April 1918 the US dollar cost only 4·32 bolívares. The monetary law of June 24, 1918 confirmed the bolívar de oro as equal to 290·323 mg fine gold. The exchange rate continued moving up and down, and did not stabilize until January 1924, after which the exchange rate remained around par.

Gen. Guzmán Blanco returned to power on February 26, 1879 and immediately continued with his 1871 program to replace foreign coin in circulation by a National coinage. His monetary law of March 31, 1879 was based on the principles of the Latin Monetary Union. The basic monetary unit was the bolívar de plata, obligatory from July 1, 1879. Copper was eliminated completely, replaced by cupronickel. A coinage limit of Bs.6 per head was set.

Coins produced in Brussels and dated 1879 were put into circulation between November 1879 and October 1880. Postage stamps appeared January 1, 1880 in denominations of 5, 10, 25, and 50 céntimos and 1, 2, 5, 10, 20, and 25 bolívares.

A modern, national mint was finally inaugurated at Caracas on October 16, 1886. The import of foreign coin was then prohibited. Foreign silver was withdrawn from circulation and recoined.