Strength and Sovereignty
VEN88, 2007-2016, 2 VEF

Slot Comment:

Bolivares Fuertes (Strong Bolivar)

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Note Details

  

Set Details
Note Description: 2 Bolívares 2012 - Printer: CMV
Grade: 67 EPQ
Country: Venezuela
Note Number: VEN88e
Signatures/
Vignettes: 		- Wmk: F. de Miranda & 2
Certification #: 2506666-072
Owner: Revenant
Set Category: World
Set Name: Strength and Sovereignty
Slot Name: VEN88, 2007-2016, 2 VEF
Research: See PMG's Census Report for this Note

Owner's Description

At the time it was announced and placed into circulation, at least officially, this note was worth about US$0.93.



It is too easy to blame the death of the Bolivar and the hyperinflation in Venezuela on the Great Financial Crisis of 2008, the collapse in oil prices, the policies of Hugo Chavez, and the new government under the Constitution of 1999. Venezuela had never been stable. It had gone through several military dictators, several democratic governments and several coups and attempted coups. Political instability does not generally lead to currency stability or economic prosperity. The country was making 50,000 Bolivares denominated notes in 1998, and that was not just Chavez’s fault.



When Chavez came to power, in 1998, the inflation rate for the country was 35.80%. This was down from a peak of 99.9% in 1996. With him in power, inflation initially fell to 23.5% in 1999, 16.20% in 2000, and hit a low of 12.5% in 2001. So, inflation was a problem before Chavez, and it never fully went away under Chavez. He did not help but he did not fully create the problem. The problems that were there before him helped get him into power, and they probably would have helped someone like him get into power if he had not been there.



The Chávez government's initial policies were moderate, capitalist and center-left. Chávez initially still believed that capitalism was a valid approach for Venezuela. He followed the economic guidelines of the International Monetary Fund and continued to encourage foreign investment in Venezuela. He even visiting the New York Stock Exchange to convince wealthy investors to invest.



Beginning 27 February 1999, Chávez started a social welfare program called Plan Bolívar 2000. He said he had allotted $20.8 million for the plan, though some say that the program cost $113 million. The plan involved 70,000 soldiers, sailors and members of the air force repairing roads and hospitals, removing stagnant water that offered breeding areas for disease-carrying mosquitoes, offering free medical care and vaccinations, and selling food at low prices. Several scandals affected the program as allegations of corruption were formulated against Generals involved in the plan, arguing that significant amounts of money had been diverted.



Also in early 1999, Chávez called a public referendum, which he hoped would support his plans to form a constituent assembly of representatives from across Venezuela and from indigenous tribal groups to rewrite the Venezuelan constitution. Chávez said, "Venezuela's socialist revolution was like an unfinished painting and he was the artist." The referendum passed with 88% of the vote in April 1999 and he created his constituent assembly, which then gave itself the power to abolish government institutions and dismiss those perceived as “corrupt.”



Opponents of the changes and Chavez argued that the new system was dictatorial. The courts, for their part, ruled that the new assembly has become the country’s “supreme authority” under the new constitution of 1999. The new assembly had also declared a “judicial emergency” and granted itself the power to overhaul the judicial system. The supreme court of the country, somewhat surprisingly, agreed with them and said they did have that authority. This did not seem to do them any favors though as the Supreme court was replaced with the “Supreme Tribunal of Justice” under the new 1999 Constitution.



The Bolivares Fuertes notes were mostly issued in two 6-note series that can basically be thought of as a "Series 1" and "Series 2". The "Series 2" notes use the same designs, in the same order of ascending denominations, but with different color schemes and face values. The “Series 1” notes released in 2007 alongside a new group of 7 coins, which included a 1 Bolivar coin. This is the reason the lowest note in this series is the 2 Bolivar note. The government had intended that the "Series 1" notes - which were basically worthless by the time "Series 2" came out (in 2016) - would be withdrawn from circulation. So, these two groups of notes were not meant to circulate together and so there was less perceived risk with people getting the notes confused with each other. The “Series 2” notes came out with new 10 Boilvar, 50 Bolivar, and 100 Bolivar coins that were supposed to replace VEN90, VEN92, and VEN93 with coins. As a result, VEN88 and VEN94 look essentially the same.



The front of this note features an image of a younger Francisco de Miranda. A portrait of an older Miranda was used on the 200 Bolivares Soberano note (VEN107). The back of this note shows “Orinoco River Dolphins” (Inia geoffrensis) with the Coro Dunes in background and a Gusano flower. For more information on the design of this note and the significance of the things in it, look at my description for VEN94.



In case anyone ever wonders, the words “pagaderos al portador en las oficinas del banco” under the denomination translate to “payable to the bearer at the bank’s offices.”

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