The Parallel Dollar in Venezuela

If you are accustomed to the Venezuelan financial market,
you have probably heard about the parallel dollar. If you
want to read more about this special currency then please
read on to find out.



Alongside the official U.S. currency exchange market
there exists a so called "parallel market" where the
value of the currency is regulated by the government
of the Republic of Venezuela.



The parallel dollar is the currency that circulates via
unofficial bodies.


Bolívar fuerte
The government announced on 7 March, 2007 that the
bolívar would be revalued at a ratio of 1 to 1000 on 1
January 2008 and renamed the bolívar fuerte in an effort
to facilitate the ease of transaction and accounting.


The new name is literally translated as "strong bolívar",
but also references an old coin called the Peso fuerte
worth 10 Spanish reales.


The name "bolívar fuerte" is only used temporarily to
distinguish it from the older currency that is being used
along with the bolívar fuerte.
This duality will last until 2009.


The Central Bank of Venezuela is promoting the new
currency with an ad campaign and the slogan: "Una
economía fuerte, un bolívar fuerte, un país fuerte"
(lit. "a strong economy, a strong bolívar, a strong
country"). Nevertheless, the black market value of the
bolívar fuerte has been significantly lower than the fixed
exchange rate of 2.15 (in February of 2008 it was as high
as 7.0 to 1). It is illegal to publish this "parallel exchange
rate" in Venezuela.

As of 8 January 2010,
The value is being changed by the government from the
fixed exchange rate of 2,150 bolívares (2.15 bolívares fuertes)
to 2,600 bolívares (2.60 bolívares fuertes) for some imports
(certain foods and healthcare goods) and 4,300 bolívares (4.30
bolívares fuertes) for 'unnecessary' imports like cars,
petrochemicals, and electronics.

• Second text "Bolivar Fuerte" is copied from Wikipedia