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Venezuela redenominates currency dividing by 1000 from Jan 1, 2008

As of January 1st, 2008, three zeros will be eliminated from the denomination. This means that 1,000 Bs. as the Venezuelan currency is known, would be worth 1 Bs.F. “bolivar fuerte” .The measure necessarily means that all prices, salaries, bonds, taxes, pensions, and , in general, any transaction or reference to the old currency, should be changed into “bolivar fuerte” by dividing said amounts by 1,000.

There would be a period of transition of six months in which both, the old and the new currency would coexist. After this period, currency exchange will continue as long as necessary, so that people could change old currency for new currency at financial institutions and also at BCV.

Parra further explained, “Currency redenomination will not alter the relative value of incomes, expenses, goods or debts”. If a person has saved 1,000,000 old bolivars, they would be worth 1,000 “bolivar fuerte” after the redenomination process. This does not mean that her savings have decreased but that they will be expressed in a new monetary scale.

Source: Banco Central Venezuela Website

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