(ESP-ENG) VENEZUELA: CAMINO A LA TERCERA RECONVERSIÓN MONETARIA/VENEZUELA: ON THE ROAD TO THE THIRD CURRENCY RECONVERSION

The second round of this story began on August 20, 2018, being in charge of the presidency Nicolás Maduro Moros and consisted in the elimination of 5 zeros to the national currency in order to counteract the economic war, the recovery of the purchasing power of our currency and the alleged extraction of the Venezuelan banknote to other latitudes. This measure was accompanied by a series of economic actions, among which we can highlight the anchoring of the salary to the Petro, the cryptocurrency created by the government, the increase of the minimum salary by 6,000.00% and the increase of the prices of basic necessities and basic services. Being expressed as follows:

On August 5 of this month, it was announced that Venezuela will enter into its third monetary reconversion so far in the revolutionary government. It consists of the elimination of six (06) zeros or the division by 1,000,000.00 of the Venezuelan currency and the introduction of a new national currency, called Bolivar Digital. The introduction of this currency will have no effect whatsoever on the value of the current currency, in other words, the Bolivar will not be worth more or less, only that in order to make it easier to handle, a simpler scale is being transformed according to what has been stated by the national government through the Venezuelan central bank. This measure is supported by the deepening and development of the digital economy at a time when the country is showing some signs of economic recovery, according to the Bolivarian government. It also added that the reference exchange rate will continue to determine the Venezuelan exchange system. Now that all this has been exposed, it is worth mentioning that when dividing by 1,000,000.00, the digital Bolivar would be denoted in:

The family of bills and coins that will be in circulation with the new cone includes bills of 5, 10, 20, 20, 50 and 100 Bs.D and a 1 Bs.D coin.

At present the internal urban fare is 500,000.00 Bs.S, when divided by 1,000,000.00 it would result in 0.50 Bs.D; as you can see, the currency of lesser value that will circulate will be the 1 Bs.D, therefore the transportation sector will be forced to raise the fare from 500.00.00 to 1,000,000.00 or its equivalent of 1 Bs.D, at least to be able to operate normally since they will not have the means to give change when receiving the payment from the users of the service. The Bolivarian government says that the change to the new currency will not affect the Venezuelan economy at all, but this simple example shows that Venezuelans will be losing 100% of our income in this change, speaking only of retail, let us imagine then how it will be at wholesale? Another thing I did not want to say goodbye without mentioning that in 13 years they have eliminated fourteen zeros from our currency, which means that our current currency if we write it in digital Bolivar would be like this: 100,000,000,000,000,000,000.00 Bolivars = 1 digital Bolivar. With that amount we would be paying an internal ticket as of October 1st of this year. This amount is read in One Hundred Billion Bolivars or One Hundred Billion Bolivars. But that will be the subject of another story. It will dawn and we will see.