DEFINITION of 'VEB (Venezuelan Bolivar)'
The currency abbreviation for the Venezuelan bolivar (VEB), the currency for Venezuela from 1879 to January 2008. The Venezuelan bolivar was made up of 100 céntimos and was presented with the symbol Bs. The Venezuelan bolivar was replaced with the bolivar fuerte (VEF) at a rate of 1000:1 because the bolivar was so devalued due to inflation. Bolivar fuerte is translated in English as "strong bolivar."
BREAKING DOWN 'VEB (Venezuelan Bolivar)'
Initially based on the silver standard (1 bolivar = 4.5 grams (0.1575 ounces) of fine silver) until 1910 when the gold standard came into operation. In 1934, the bolivar became fixed to the U.S. dollar at a rate of 3.914 bolivar to 1 U.S. dollar. The currency remained very stable (when compared to others in the region) until the 1970s, when rampant inflation began to erode its value.