Currency of Venezuela
Trade, especially in cacao, brought money to the colony in the late 17th century in the form of coin from the Mexico money supply, which increased significantly after the Compañía Guipuzcoana de Caracas obtained a trade monopoly in 1729, and Spanish and Spanish-American coin became a common form of payment.
The Guipuzcoana Company then brought in a large quantity of cobs (macuquina) from the Lima, Potosí, and Mexico City mints.
The later 18th century was characterized by an inadequate money supply, and merchants used tokens (señas or fichas) to facilitate retail trade.
By 1795 the use of tokens (made of iron, copper, or tin) was very widespread, but their unregulated issue and use was considered a problem.
The notes were put into circulation November 18, 1811 as a forced tender backed by national revenues.
Congress ordered all gold and silver coin minted in Gran Colombia to meet the old Spanish standards (Decree of September 29, 1821).
José Antonio Páez, who eventually came to lead the separatist movement in Venezuela, reopened the Caracas mint in 1829 and authorized a silver peseta (2 reales) and a copper cuartillo.
Good quality silver coin tended to disappear from circulation (being used to pay for imports).
The government published a table December 30, 1830 fixing the value of foreign coin in terms of local macuquina.
Then on March 25, 1835 Congress authorized circulation of a hitherto unfamiliar coinage, copper centavos (cents) of the United States.
To replace macuquina, Congress authorized the government, May 2, 1840, to obtain French francs (and halves and quarters) and United States silver 5, 10, and 20-cent pieces and copper cents and half-cents.
It provided for a national copper coinage (minted at London), which was legal tender for all debts public and private.
When these coins were put into circulation, the legal tender status of copper cents (centavos) from the United States was revoked (October 12, 1844).
The first bank to issue paper money was the Banco Colonial Britanico, established July 29, 1839 with a capital of $300,000.
Banco Nacional de Venezuela was created by act of Congress, May 17, 1841, with a capital of 2.5 million pesos.
No detailed explanation was provided—presumably, the new government wanted to make a clean break with the policies of the conservative oligarchy (Oligarquía Conservadora, 1830–1848) that it replaced.
The government (República de Venezuela) issued certificates on the public debt (deuda pública) that were legal tender and payable to bearer.
The Junta de Recursos issued notes for 8 reales (one peso sencillo) dated March 1, 1862.
El Banco de Londres y Venezuela, Limitado was established at Caracas January 1, 1865 with a capital of £500,000 sterling.
It issued notes for "5 pesos sencillos" (face, Spanish) or "5 dollars currency" (back, English), dated January 23, 1865.
When the coinage of 1873–1874 was released, the circulation of all mutilated and worn coin was prohibited (Resolution of June 18, 1874).
Guzmán increased central government power by virtually privatizing customs collection through this institution.
The government ordered subsidiary silver coins of 5, 10, 20, and 50 centésimos de venezolano from Paris, June 11, 1873.
= 100 Céntimos Conversion: 5 bolívares = 1 venezolano (peso fuerte); 1 bolívar = 20 centavos (de venezolano) Gen. Guzmán Blanco returned to power on February 26, 1879 and immediately continued with his 1871 program to replace foreign coin in circulation by a National coinage.
Banco Comercial was established at Caracas July 20, 1882 and began operations August 1883, issuing notes for 20, 50, 100, 500, and 1000 bolívares.
Banco de Carabobo was established in December 1883 at Valencia by Domingo Olvararría, issuing notes for 20, 30, 100, and 500 bolívares.
The monetary law of June 24, 1918 confirmed the bolívar de oro as equal to 290·323 mg fine gold.
Thomas de la Rue redesigned the portrait on its notes and these began appearing in circulation in 1960.
Banco Central released a 5-bolívares note (authorized May 10, 1966) commemorating the 400th anniversary of the founding of Caracas in 1567.
Beginning in 1971, Banco Central began releasing notes of a more modern, non-traditional design in denominations of 10, 20, 50, 100, and 500 bolívares, printed by different printers.
