The Fiat currency that is the Venezuelan Bolivar!

The national currency of Venezuela is the Bolivar, however, everyone uses the US dollar to trade. Although Venezuela is one of the only Latin American lands that has not participated in Dollarization.  However, it is one of the countries with the highest circulation of the US dollar in the black market. The Bolívar has lost its value over time, due to inflation which is created when the government prints too much money and has nothing supporting it.

However, the Venezuelan government in denial of dollarization and continues to pay salaries and manage prices in bolivars, subjecting us to more misery. The Venezuelan laments when the dollar increases in value because while it rises, the Bolivar decreases.  This makes the Venezuelan salary more miserable. As a consequence of this, the Venezuelan has determined that it is best not to save money but to spend it before the devaluation of the currency and hyperinflation.  Most people change bolivars to dollars as quickly as possible. This is done on the black market, there are no exchange houses, where you can purchase other currencies.  This is why some people sell dollars clandestinely as a feasible business.  

Buying and selling with dollars on the black market has become a normal matter, anyone who wishes to acquire currency in dollars can do so, the bolívar is used very little in cash, businesses have labeled their products and services with dollars, “the green ones” as we say in Venezuela have become a better choice.

Although the government has not wanted to accept that one of the solutions to the economic crisis s dollarization, the people have decided to place their trust in the use of the dollar even when it only circulates on the black market, without a standard price and illegally.

The Bolivar is so worthless is there is nothing “backing” it.  No one has faith in this exchange medium.  The government prints the money and says it is worth something.  We are expected to just believe them.  

Daniel Moreno