History of the 1 Million Bolívares Banknote
On March 5, 2021, the Central Bank of Venezuela announced the launch of three new bills, in which the denomination of 1 million Bolívares stands out, the bill with the largest denomination in the history of Venezuela. However, it should be noted that, at the time of its launch, its real value was only equivalent to $0.52 dollars, so a 1 million Bolívares bill would not be enough to buy even a cup of coffee or a couple pounds of rice.
Why did Venezuela issue such a high denomination bill with so little real value? To answer this question it is important to understand the economic context of Venezuela.
At the beginning of 2021, Venezuela was facing one of the highest inflations in the world economy. Its monthly inflation rate was 55.2%. Hyperinflation constantly devalued the value of the currency, reducing its purchasing power. By this time, the Government of Venezuela withdrew the 10,000 Bolívares bill from circulation, since it had no use or value in the market (At that time, a 10,000 Bolívares bill was equivalent to approximately $0.5 cents of a dollar) remaining only the 20,000 and 50,000 bills circulating.
In March 2021, the Central Bank of Venezuela issues three new banknote denominations: 200,000 Bolívares, 500,000 Bolívares and 1,000,000 Bolívares, in order to simplify the use of paper money in the Venezuelan economy (a 1 million Bolívares banknote is equivalent to 100 bills of 10,000 Bolívares)
200,000, 500,000 y 1 Million Bolívares Banknotes
Did these banknotes solve Venezuela's economic problem? No, in fact, the vast majority of analysts received the news with skepticism. The new banknotes, including the 1 million Bolívares, were rapidly losing their value as a result of hyperinflation. A few months later, in October 2021, Venezuela presents its New Monetary Expression, in which six zeros are eliminated from its currency, in order to simplify the monetary and accounting systems. Under this new scheme, 1 Digital Bolívar was equivalent to 1 million Bolívares Soberanos.
Although the 1 million Bolívares note was only in use for a few weeks, it represents a valuable item for collectors who wish to have the highest denomination note issued in Venezuela in their collection. At IRVE Antiques you can buy the 1 million Bolívares bill and we will send it to you anywhere in the world. Click HERE for more information.