The Venezuelan twelve-and-a-half-céntimo coin (12+1⁄2 céntimos), was a cupro-nickel money and that was worth one-eighth of a silver Venezuelan Bolivar (VEB),[1] this round piece of metal was known also with the very popular nicknames of "locha" (pronounced [ˈlotʃa])[2] or "cuartillo" (pronounced [kwaɾˈtiʝo]).
Venezuela | |
| Value | 0.125 bolívar |
|---|---|
| Mass | 3.93 g |
| Diameter | 23 mm |
| Edge | plain |
| Shape | round |
| Composition | nickel-plated steel |
| Years of minting | 1896–1969, 2007–2018 |
| Obverse | |
 | |
| Design | Denomination of the coin, the eight stars of the national flag and two palm branches |
| Reverse | |
 | |
| Design | Coat of arms of Venezuela and the name of the country of issue |
The Venezuelan Coinage Act of 31 March 1879, established the Bolivar as the official currency,[3] one locha was equivalent in value to 1⁄8 bolívar, 2+1⁄2 centavos and 1⁄4 real; these coins were minted in Germany, the United States and Spain in the years 1896, 1925, 1927, 1929, 1936, 1938, 1944, 1945, 1946, 1948, 1958 and 1969;[4] in 1971, cupronickel 10-céntimo coins were issued to replace the 12+1⁄2-céntimo coin which had last been issued in 1969. Rising inflation and hyperinflation depreciated the value of these coins in relation to the value of their make them up materials; this depreciation led to their eventual abandonment. None were made after the 1970s until 2007.[5]
The last 12+1⁄2 céntimos coins were issued with a series of novel features since its last issuance by the monetary authority Central Bank of Venezuela (in Spanish BCV) since 2007 through 2018. They had a diameter of 23 mm and a thickness of 1.3 mm. Its composition was plated steel in nickel; the edge (outer edge) of these coins had an aesthetically smooth design. These coins were minted by Casa de la Moneda de Venezuela.[4]
These new series coins were affected depreciation too and they disappeared from the country's economy, after the currency redenomination of August 2018 and due to the hyperinflation that currently affects it.[6]
For November 26, 2020, the exchange rate between the US dollar and the sovereign bolivar (VES) is as follows:
- At the Exchange-rate regime, US $1 is equivalent to Bs.S 926,916.9221[1]
- At Exchange rate (Black market) US $1 is equivalent to Bs.S 1,015,000.00[7]
For this reason, a Venezuelan citizen would have to hypothetically pay 8,120,000 lochas to buy one American dollar in the parallel Venezuelan currency market. To all the above we must add that, there have been two currency Redenominations of the bolivar, in the first of 2008 (VEF)[8][9] three zeros were removed and in the second in 2018 (VES)[10][11] five zeros were removed, therefore, if we calculate the price of one dollar American based on the value of a VEB Bolivar from 1879 to 2007 one would have to pay the staggering amount of 8.12×1014, that is, 812 trillion lochas.
See also
editReferences
edit- ^ a b "Banco Central de Venezuela". bcv.org.ve (in Spanish).
- ^ "Diccionario De La Real Academia Española". Vigesimotercera Edición. Octubre de 2014. (html) https://dle.rae.es/locha?m=form Retrieved 2020-11-30. (In Spanish)
- ^ Rondón, Dubraska (31 de marzo de 2018). «El 31 de marzo de 1879 se promulga la Ley de Monedas» (html). MINCI. Retrieved 2020-11-29. (In Spanish)
- ^ a b Numismatic Catalog of Venezuela. https://www.numismatica.info.ve/en/coins/mv-bs.htm
- ^ "Venezuela will slash value of currency, the bolivar". BBC. 2010-01-09. Retrieved 2010-01-09.
- ^ Sterling, Joe (2018-08-23). "Venezuela issues new currency, amid hyperinflation and social turmoil". CNN. Retrieved 2018-08-23.
- ^ "Indicadores Economía Venezolana". dolartoday.com (in Spanish).
- ^ "Venezuela Introduces New Currency". Gata. 2008-01-01. Retrieved 2020-12-04.
- ^ Rueda, Jorge (2008-01-01). "Venezuela cuts three zeros off bolivar currency". Reuters. Retrieved 2008-02-04.
- ^ "Inflation-hit Venezuela to remove five zeros from currency". Deutsche Welle. 26 July 2018. Retrieved 2018-07-26.
- ^ "With 1,000,000% inflation, Venezuela slashes five zeroes from its bills". Retrieved 22 August 2018.