Venezuela Currency Over Time: From Colonial Era to Digital Age

The currency of Venezuela has undergone significant changes over the centuries. The first currency used in Venezuela was the Spanish dollar, introduced by the Spanish colonizers in the 16th century.

In the 18th century, the Spanish dollar was replaced by the real, which was the official currency of the Spanish Empire. The real was divided into 8 reales.

The Venezuelan peso was introduced in 1879, replacing the real as the official currency. The peso was pegged to the US dollar at a rate of 1:4.

Curious to learn more? Check out: What Is Real Time Payment

Venezuela shared the common Spanish-American monetary system, based on the silver peso and the gold escudo, used throughout Spanish America.

Trade, especially in cacao, brought money to the colony in the late 17th century in the form of coin from the Mexico money supply. This increased significantly after the Compañía Guipuzcoana de Caracas obtained a trade monopoly in 1729.

The prohibition on the circulation of American coin in Spain (May 4, 1754) resulted in coin from the Spanish mints returning to Spain, and the Guipuzcoana Company brought in a large quantity of cobs (macuquina) from the Lima, Potosí, and Mexico City mints.

Explore further: What the Currency in Mexico

The cob coinage remained in circulation for many years, only disappearing in the first years of the Republic.

Here are some specific coins that were in circulation:

macuquina-style silver dated Año 2:

The peso was also divided into smaller units, with the Bolívar equal to 100 Céntimos.

Pre-Independence currency was quite unique in Venezuela. The country shared a common monetary system with Spanish America, based on the silver peso and the gold escudo.

Peso was equal to 8 Reales, and Escudo was equal to 2 Pesos. This system was used throughout Spanish America, and trade in cacao brought a lot of money into the colony in the late 17th century.

In 1729, the Compañía Guipuzcoana de Caracas obtained a trade monopoly, which increased the amount of coin coming into the colony. Spanish and Spanish-American coin became a common form of payment.

However, the prohibition on the circulation of American coin in Spain in 1754 resulted in coin from the Spanish mints returning to Spain. The Guipuzcoana Company then brought in a large quantity of cobs (macuquina) from the Lima, Potosí, and Mexico City mints.

A special coinage was minted in 1787, but it was later withdrawn due to concerns that it could be passed as regular coin. This was a problem, and it highlights the inadequacies of the money supply at the time.

To deal with this situation, the Caracas Cabildo authorized official copper tokens, and Venezuela's first mint opened at Caracas in November 1802. This was a significant step towards establishing a more stable currency.

Here are some examples of the early currency in use:

The macuquina-style silver dated Año 2 was also used, with coins in the following denominations:

In the end, the Bolívar was established as the official currency, with 100 Céntimos equal to 1 Bolívar.

In 1854, a new monetary law was passed, aiming to establish a national mint in Caracas to produce a coinage based on both gold and silver. The gold coins would be: onza, media onza, doblón (1/4 onza), escudo (1/8 onza), and venezolano de oro (1/16 onza or peso de oro).

If this caught your attention, see: Digital Gold Currency

The government was unable to establish the mint, and no coins were produced. This lack of a national mint led to the implementation of a new law in 1857, authorizing coinage abroad.

The basic coin was to be the gold peso fuerte of 1.61290 g, 0.900 fine, accompanied by two multiples, a doblón (10 pesos fuertes) and an escudo (5 pesos fuertes).

Silver coins, 0.900 fine, were: medio peso (5 reales), 11.50 g, 30 mm; peseta (2 reales), 4.60 g, 23 mm; real, 2.30 g, 18 mm; and, medio real, 1.15 g, 16 mm. There was also a centavo, 95% copper and 5% tin-zinc, 7.50 g, 25 mm.

Here is a list of the proposed gold coins:

During the mid-19th century, the Venezuelan government issued public debt certificates as a form of currency.

These certificates were legal tender and payable to the bearer, making them a convenient and widely accepted form of payment.

They bore the signatures of respected merchants, lending credibility to these financial instruments.

Certificates were issued for various denominations, including 8 reales and 5, 10, 20, 50, and 100 pesos.

Multiple issues were made under different decrees, starting with one on October 20, 1859 and the last on January 15, 1861.

There were separate issues for different regions, such as Caracas, Carabobo, and Aragua.

Banco de Venezuela was in operation from November 1, 1861 until November 30, 1862.

It was established by the Páez government with a credit from the Treasury, and a capital of $4 million, earning it the nickname "Banco de la Dictadura".

The Banco de Venezuela issued promissory notes, known as "vales", of 5 and 50 pesos dated February 1, 1862.

See what others are reading: Venezuelan Currency to Gbp

Private Bank Notes were issued by banks in Venezuela during the pre-independence era. One example is the El Banco de Londres y Venezuela, Limitado, which was established in 1865.

It had a capital of £500,000 sterling and issued notes with a face value of 5 pesos sencillos. This is equivalent to 5 dollars currency.

The Bolívar fuerte was the currency unit used in Venezuela at that time, with 100 Céntimos fuertes making up one Bolívar fuerte.

Venezuela's currency has undergone significant changes over the years. The Bolivar Fuerte (VEF) was introduced in 2008, replacing the old Bolivar (VEB).

In 2016, the Bolivar Fuerte was replaced by the Bolivar Soberano (VES), which is the current currency in circulation. This change was made to combat inflation, but it has not been effective.

The Venezuelan government has also introduced various currency controls and exchange rates to manage the economy, but these measures have been criticized for being ineffective. The country's inflation rate has continued to soar, making it difficult for people to afford basic necessities.

In the early 19th century, Venezuela was part of Gran Colombia, a federation with modern-day Colombia and Ecuador. The monetary laws in force during this time were based on those of Colombia.

Bolívar prohibited the circulation of all copper coin and post-1810 royalist coin that hadn't been counterstamped at Bogotá in June 1821. Only milled coin and the old Spanish macuquina were permitted to circulate.

A fresh viewpoint: Colombia Currency to Gbp

The Colombian monetary law of March 14, 1826, established a gold coinage based on the Colombian gold peso, weighing 1.797238 grams. This was a significant standard for the region.

Coins were inscribed REPÚBLICA DE COLOMBIA, indicating their official status. The Caracas mint produced copper cuartillos, which were legal tender for one peso fuerte, between July 14, 1821, and its closure on October 31, 1822.

Here's a list of some of the coins that were introduced during this time:

José Antonio Páez reopened the Caracas mint in 1829, authorizing a silver peseta and a copper cuartillo. The mint then closed for good in October 1830.

Bolívar's monetary law of November 6, 1828, confirmed the unrestricted circulation of macuquina.

The 1862 Junta issued notes for 8 reales, equivalent to one peso sencillo, dated March 1, 1862.

The Junta de Recursos printed four different denominations, each with its own unique characteristics.

The medio, or 1/2r, coin measured 14.5 mm in diameter and weighed 1·150 g, with 40,270 pieces minted.

The real, or 1r, coin was slightly larger, measuring 17.5 mm in diameter and weighing 2·300 g, with 42,698 pieces produced.

The peseta, or 2r, coin was the largest of the four, measuring 23 mm in diameter and weighing 4·600 g, with 29,990 pieces minted.

The bamba, or 5r, coin was the largest denomination, measuring 30 mm in diameter and weighing 11·500 g, with 26,120 pieces produced.

Here's a summary of the 1862 Junta's coin denominations:

In 1869, the treasury issued notes called "billetes de Tesoreria" for 5 pesos. This was made possible by an authorization on January 19, 1869.

The Bolívar (Bs.) was the currency used at that time, equivalent to 100 Céntimos.

The Bolívar silver coin was introduced in 1879 as the basic monetary unit, replacing foreign coin in circulation. It was obligatory from July 1, 1879.

Gen. Guzmán Blanco's monetary law of March 31, 1879 was based on the principles of the Latin Monetary Union. This led to the creation of a modern, national mint in Caracas, which was inaugurated on October 16, 1886.

The import of foreign coin was prohibited after the mint's inauguration, and foreign silver was withdrawn from circulation and recoined. This marked a significant shift towards a nationalized currency.

Coins produced in Brussels and dated 1879 were put into circulation between November 1879 and October 1880. Postage stamps appeared in January 1880, with denominations of 5, 10, 25, and 50 céntimos and 1, 2, 5, 10, 20, and 25 bolívares.

Here are some key facts about the Bolívar silver coin:

The 5 bolívares dated 1879–1889 has "28 DE MARZO DE 1864" in the ribbon (reverse).

During this period, the United States officially adopted the gold standard in 1879, which made the dollar equivalent to 23.22 grains of gold.

The gold standard was a significant shift from the paper money system used previously, and it brought a sense of stability to the economy.

The gold standard was a monetary system in which the value of the currency was pegged to the value of gold.

In 1887, the Coinage Act was passed, which allowed the government to mint coins with a lower gold content.

This change was made to reduce the cost of producing coins and to increase the supply of money in circulation.

The gold standard remained in place until 1933, when President Franklin D. Roosevelt suspended the gold standard during the Great Depression.

The suspension of the gold standard allowed the government to print more money and implement policies to stimulate the economy.

The gold standard was eventually reintroduced in 1944, but it was not until 1963 that the United States officially abandoned the gold standard and allowed the value of the dollar to float on the foreign exchange market.

Curious to learn more? Check out: Us Currency Coins