Daily Data Dive

PYMNTS Daily Data Dive: Venezuela’s New Notes

Facing some of the highest inflation in the world — some estimates say it’s over 500 percent — Venezuela will be pulling its largest bill from circulation this week as it prepares to introduce new, higher-value notes.

The current value of Venezuela’s highest bill on the black market is about $0.02. The 100-bolivar note will be taken out of circulation on Wednesday. Venezuelans will have 10 days to exchange those notes at the central bank. Critics say that with more than 6 billion 100-bolivar bills in circulation at present, there will be no way to swap them all out in the time allotted.

As of Thursday, six new notes and three new coins will be introduced the market. The largest bill will be worth 20,000 bolivars — or about $5.

Here are the numbers:

500 percent | Ecoanalítica’s estimate for Venezuela’s annual inflation in 2016

100 bolivars | Current largest note in circulation, being pulled on Wednesday

$0.02 | Value of the 100-bolivar note on the black market

10 | Days Venezuelans have to exchange 100-bolivar bills

6 billion | Estimated amount of 100-bolivar bills in circulation

6, 3 | New notes and new coins to be introduced into circulation on Thursday

20,000 bolivars | Largest denomination of the new notes to be introduced

$5 | Estimated black market value of the 20,000-bolivar note in U.S dollars

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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