Russian Goznak will print money for Venezuela

2020: Order for production of 300 million notes

On February 19, 2020 it became known that the Russian enterprise "Goznak" specializing in printing of money received the order from the authorities of Venezuela for production of 300 million notes of different face value in bolivares – the fundamental monetary unit of the Latin American country.

Transaction amount is $6.8 million (about 433,568,000 rub)

According to the contract, Goznak should issue banknotes from 10 thousand bolivares ($0.14) to 50 thousand bolivares ($0.68).

The total cost of money which is raised to make for Caracas is about $143 million.

The agency notes that because of high inflation the U.S. dollar remains the most preferable currency in Venezuela, but the power of the president Nicolás Maduro does not intend to refuse own currency.

Sanctions from the USA are imposed against the Central bank of Venezuela, it deprived bank of access to the American money^[1].

Deficit of cash in the country arose because of the fast inflation continuing from 1980th years. In recent years its rates sharply increased, in 2018 it made 65,374%.

In the past Venezuela ordered notes from one of producers of securities De La Rue. In 2019 the company stated that it because of outstanding debts of Venezuela lost 23 million dollars. Then Caracas could not pay money because of the sanctions inflicted on the country.

In November, 2019 it became known that from May, 2018 to April, 2019 Russia sent to Venezuela 315 million dollars cash. The agency assumed that it could be connected with the solution of the president Nicolás Maduro to return the means which are stored abroad^[2].

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