On August 20, a new monetary reconversion will take effect in the country, the second one implemented by the "revolutionary" government since its arrival in power in 1999. On this occasion, as explained by President Nicolás Maduro on national television on July 25, there will be five zeros that will be taken from the bolivar, which will be renamed the sovereign bolivar, and the measure "seeks to stabilize and change the monetary and financial life of the country in a radical way ".
This is how if a person has 100,000 bolivars, as of Monday he will say he has 1 bolivar, but with that money he will be able to acquire the same good or service that he buys today, of course, if he does not increase in price during that period.
¿What is the purpose of this measure?
For the National Executive, this monetary reconversion will "help defend the national currency from the financial attack perpetrated by imperialist sectors." However, in general terms it can be said that the objective of the same is to correct some elements that are distorting the national economy, such as inflation, the lack of monetary liquidity and the decrease in purchasing power.
¿Is it the same as the conversion of 2008?
Experts say no. Even though Venezuelans went through a similar process, this monetary reconversion tends to confuse people a little more than 10 years ago. The reason for this is that at that time three zeros were removed from the coin, which made the division easier, since what was Bs. 1,000,000, when the three zeros were removed, became 1,000 bolivars. However now we must reduce five zeros, so 1,000,000 bolivars will become Bs. 10, something that for some people is still incomprehensible and more when talking about high figures and that they do not contain zeros.
New monetary cone
As is logical, to make this elimination of zeros, the creation of a new monetary cone is necessary. Thus, as of Monday, the Government plans to circulate a new series of bills and coins. The tickets will be 2, 5, 10, 20, 50, 100, 200 and 500 bolivars, and the coins of 0.5 cents and one bolivar.
Video explaining better about the monetary reconversion in the country:
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