The constitution promulgated in 1953 gave the name of the United States of Venezuela and restored the Republic of Venezuela, which had been in use from 1830-1863.
La Crisis de la plata: En 1965 la situación del circulante metálico en Venezuela se ve afectada por las condiciones del mercado internacional de la plata, que hace crisis ese año, y por las crecientes necesidades internas. Acentúa la escasez de circulante el atesoramiento con fines especulativos ante la posible alza del metal.
Silver was traditionally used in the minting of coins for their intrinsic value corresponded with manufacturing costs and profit, the nominal value of the pieces, a fact that explains the high degree of acceptance of these coins enjoyed worldwide.
The phenomenon of the market imbalance silver originated by insufficient production to meet growing demand.
Facing a steady production level or slow rise, consumption of silver increased considerably in those years, both industrial and monetary purposes.
The Report of the Central Bank of Venezuela for 1965 and, under the title “International problems and situation of silver coins in Venezuela”The Institute analyzes the difficulties in this area facing the country and exposes the suggestions that had been made to the Executive to promptly remedy.
The situation that led to the enactment of a Currency Coinage Act on December 16, 1965, through which ordered the minting of silver coins of Bs 5.2 and 1; pure nickel Bs
France agreed to mint silver coins 1 and 2 Bs.
When the public became aware of the shortage of silver in the international market and the possible increase in the price of the metal, there was a substantial increase in demand for coins Bs 5, whose intrinsic value had almost reached their monetary value. “strong” circulation.
In 1967 the situation becomes critical.
“The substitution of other metals silver coinage purposes should not, by itself, any adverse impact on the national economy, while recognizing the likely negative psychological effect and transient in some sectors of the community… The use of other metals for monetary purposes is, moreover, a process that is being met on a universal scale and a display would be inconceivable to stay in the current situation. ”.
It was impossible to further postpone the replacement of silver in the coins.
The substitution of nickel silver caused, as expected, adverse comments from the public little aware of the circumstances leading to it, despite the many and frequent communications borne about BCV authorities through various
Disappearance of the loach: The main drawback of this coin was that it did not fit, for your fraction of a cent, in the decimal monetary system and created difficulties in accounting, especially in the mechanized using cash registers.
Moreover, the large size and weight of the coins of loach (Bs 0.12 ½) in relation to its low value, its coinage was onerous.
Central Bank Act Venezuela: The October 30, 1974 approving the new Central Bank Act of Venezuela which marks a radical change in government policy regarding the minting of the coin.
