<story><title>Venezuela Follows India’s Example and Voids Half of Its Cash</title><url>http://blogs.wsj.com/indiarealtime/2016/12/13/venezuela-follows-indias-example-and-voids-half-of-its-cash/</url></story><parent_chain><item><author>firekvz</author><text>I really can&amp;#x27;t understand how this article misses entirely the actual news here&lt;p&gt;&amp;quot;Venezuela is issuing a full new set of notes and is replacing 100 VEF bills (the biggest we had) for a coin&amp;quot;&lt;p&gt;So far we had this (in VEF):&lt;p&gt;- Coins for: 0.05, 0.1, 0.125, 0.5 and  1&lt;p&gt;- Bills for: 2, 5, 10, 20, 50 and  100&lt;p&gt;now we will have (in VEF):&lt;p&gt;- Coins for: 10, 20, 50 and 100&lt;p&gt;- Bills for: 500, 1.000, 2.000, 5.000, 10.000 and 20.000&lt;p&gt;So thats about it, the gov is finally accepting that we have a huge inflation and the old bank notes can&amp;#x27;t be used any more (in terms of convenience) so they are exchanging our current biggest bank note of 100 for other sizes but is nowhere mentioned in the article&lt;p&gt;Of course all the previous bank notes (from the old set) are being banned because they are being taking out of circulation mostly because the DESING IS THE SAME (just a recolore) and can cause confusions, here you can see a comparation:&lt;p&gt;- old desing: &lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;runrun.es&amp;#x2F;wp-content&amp;#x2F;uploads&amp;#x2F;2013&amp;#x2F;10&amp;#x2F;venezuela-bolivar-fuerte.jpg&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;runrun.es&amp;#x2F;wp-content&amp;#x2F;uploads&amp;#x2F;2013&amp;#x2F;10&amp;#x2F;venezuela-boliva...&lt;/a&gt;&lt;p&gt;- new desing: &lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;imgs.globovision.com&amp;#x2F;2Io-ZrCgwYEjgOw-dGsi6ndh1WM=&amp;#x2F;700x0&amp;#x2F;smart&amp;#x2F;e3ccb1d95ed74a8a919e4bec4f0c2375&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;imgs.globovision.com&amp;#x2F;2Io-ZrCgwYEjgOw-dGsi6ndh1WM=&amp;#x2F;700...&lt;/a&gt;&lt;p&gt;In resume this is actual good news for venezuelans because even tho we still suffer all the problems we have, at least we get to avoid carrying 1 kilo of 100 VEF notes to make a purchase, we can just pay with 1 20.000 bill.</text></item></parent_chain><comment><author>rafaelm</author><text>You conveniently miss the part where people are losing money and savings because they cannot exchange the bank notes they had at home before the deadline ends. 30% percent of the population here does not have access to a bank account and cannot deposit the bills.&lt;p&gt;Are the people living in the most remote parts of the country supposed to make the journey to Caracas to the Central Bank to deposit their money? What are they going to pay the bus ticket with? The worthless paper they are now holding? Are they supposed to travel with a bag full of cash in one of the most dangerous countries in the world?&lt;p&gt;If you live here in Venezuela you know most workers get paid on Fridays in cash. Now , most are left holding a bunch of worthless paper just because Maduro decided to play improvisation with the economy once again. Those workers now have no money to pay for food till monday.&lt;p&gt;Why did the government lie and say that the new bills would be in every bank on the 15th? Turns out they just arrived yesterday! The new bills weren&amp;#x27;t even in the country. Just a small sampling of their incompetence.</text></comment>
<story><title>Venezuela Follows India’s Example and Voids Half of Its Cash</title><url>http://blogs.wsj.com/indiarealtime/2016/12/13/venezuela-follows-indias-example-and-voids-half-of-its-cash/</url></story><parent_chain><item><author>firekvz</author><text>I really can&amp;#x27;t understand how this article misses entirely the actual news here&lt;p&gt;&amp;quot;Venezuela is issuing a full new set of notes and is replacing 100 VEF bills (the biggest we had) for a coin&amp;quot;&lt;p&gt;So far we had this (in VEF):&lt;p&gt;- Coins for: 0.05, 0.1, 0.125, 0.5 and  1&lt;p&gt;- Bills for: 2, 5, 10, 20, 50 and  100&lt;p&gt;now we will have (in VEF):&lt;p&gt;- Coins for: 10, 20, 50 and 100&lt;p&gt;- Bills for: 500, 1.000, 2.000, 5.000, 10.000 and 20.000&lt;p&gt;So thats about it, the gov is finally accepting that we have a huge inflation and the old bank notes can&amp;#x27;t be used any more (in terms of convenience) so they are exchanging our current biggest bank note of 100 for other sizes but is nowhere mentioned in the article&lt;p&gt;Of course all the previous bank notes (from the old set) are being banned because they are being taking out of circulation mostly because the DESING IS THE SAME (just a recolore) and can cause confusions, here you can see a comparation:&lt;p&gt;- old desing: &lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;runrun.es&amp;#x2F;wp-content&amp;#x2F;uploads&amp;#x2F;2013&amp;#x2F;10&amp;#x2F;venezuela-bolivar-fuerte.jpg&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;runrun.es&amp;#x2F;wp-content&amp;#x2F;uploads&amp;#x2F;2013&amp;#x2F;10&amp;#x2F;venezuela-boliva...&lt;/a&gt;&lt;p&gt;- new desing: &lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;imgs.globovision.com&amp;#x2F;2Io-ZrCgwYEjgOw-dGsi6ndh1WM=&amp;#x2F;700x0&amp;#x2F;smart&amp;#x2F;e3ccb1d95ed74a8a919e4bec4f0c2375&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;imgs.globovision.com&amp;#x2F;2Io-ZrCgwYEjgOw-dGsi6ndh1WM=&amp;#x2F;700...&lt;/a&gt;&lt;p&gt;In resume this is actual good news for venezuelans because even tho we still suffer all the problems we have, at least we get to avoid carrying 1 kilo of 100 VEF notes to make a purchase, we can just pay with 1 20.000 bill.</text></item></parent_chain><comment><author>int_19h</author><text>They did that exact thing in the USSR in 1991 - removed 50 and 100 ruble banknotes (the two largest) from circulation - presumably because there were a lot of fakes floating around, and the legitimate ones were heavily used in money laundering.&lt;p&gt;Except they gave people 3 days to exchange any that they had, and it was announced at 9pm on the day immediately preceding that 3-day period.&lt;p&gt;The end result is that they effectively took out 14 billion rubles from circulation - i.e. country residents were collectively robbed of that amount of money.&lt;p&gt;A similar thing was repeated in 1993, except with a 2 week timeframe to exchange.&lt;p&gt;When such procedure is done properly for legitimate reasons, the timeframe is usually set to several years.</text></comment>