The proposal that is under study would cut six zeroes from the inflation-affected Bolivar. This would aid companies in processing taxes and provider payments that are absurdly complex with today's numbers. However, the dollar is the predominant coin in retail payments in Venezuela, according to consulting firms.
Venezuela to Redenominate Its Currency
The government of Venezuela is studying a mathematical redenomination of its currency, the sovereign bolivar, to simplify payments for big companies. This redenomination would slash six zeros, making it easier to calculate payments now reaching high sums. While there has not been an official announcement yet, Bloomberg reported this subject was commented on by three people with knowledge of the matter.
The new measure comes to aid companies who had to make big payments in bolivars. This would also aid consumers paying in bolivars using POS terminals, who now have to swipe their cards several times due to system limits. However, this measure shows the government has failed in controlling inflation and devaluation of the currency. The bolivar now trades at approx. 3,200,000 VES per dollar (or 3.2 redenominated VES per dollar).