(NOTE: This is the first draft of an How-To type article that I hope to publish somewhere. Let me know what you think!)
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| Venezuelan Coffee- Made with Socialism! |
Call it what you will: El Mercado Negro (The Black Market) or more accurately, El Mercado Paralelo (The Parallel Market) for currency will save your wallet in Venezuela. If the phrase “currency black market” gives you the jungle sweats, fear not- in Venezuela the informal market for foreign currency is anything but shady, and people from all backgrounds use it regularly.
Venezuela has only one currency, the Bolivar Fuerte (Bs.F), but two types of money are available to visitors- the cheap kind and the expensive kind. Since 2003 the government has placed a freeze on the value of the Bolivar, matching the U.S. dollar at 4.23 Bs.F. (It’s actually more complicated than that, but this is the rate you will get from a cajero (ATM) or currency exchange.) At this exchange rate your travel budget will seem more European than South American, perhaps one reason that Venezuela receives considerably fewer visitors than nearby Colombia or Ecuador. In the Mercado Paralelo, however, one can receive a rate nearly twice as favorable- around eight to ten Bs.F to the Dollar (as of 2011). Ka-ching! Think of all the arepas con queso you’ll enjoy with savings like that (not to mention a wildlife viewing trip to Los Llanos.)
As the black market value of the Bolivar will fluctuate, it will be necessary to ask around to get a current quote. (There is no “official” black market quote, at risk of being obvious). If arriving to Venezuela by air this may take a bit of patience, if traveling overland from Colombia or Brazil- just ask anyone near the border. The ”unofficial” exchange rate is a household subject and in no way taboo. It should be noted that the act of trading currency through unofficial channels is indeed illegal, but the act is common enough that the chances of problems with law enforcement are zero to none.
In general there are two ways to acquire Venezuelan Bolivares in the Mercado Paralelo- selling Dollars/Euros, or exchanging Colombian Pesos/Brazilian Reales at a border town. Which method you use depends on your mode of arrival and level of comfort.
Selling Dollars
As in many countries, Venezuelans buy foreign currencies like the dollar as a household investment (dollars by far being preferred). Using this method means you will carry whatever sum of dollars you wish to exchange on your physical person in to Venezuela.
Many individuals and businesses will be willing to purchase dollars from you, though it may be difficult to arrange before you are in the country unless you have trustworthy contacts. If you choose this route, it should not be necessary to exchange in a border town as people throughout the country will be willing to purchase dollars. For the casual tourist, reliable places to ask about selling include hotels/hostels and tour/guide companies. Feel comfortable asking the staff about this topic- as mentioned earlier, it’s not taboo or secret. At the same time, be respectful and ask at a moment when staff are not too busy.
Exchanging Currency at the Border
Trading currency at the border is a less preferable alternative to selling dollars in-country if you are an easily-stressed traveler, but it is common and really quite simple to pull off. If you are arriving overland, you’ll probably want to trade your remaining pesos or reales for pocket change.
Arrival by Airport- You will be approached by persistent young men palming wads of cash once you clear customs (¿Vas a cambiar? ¿Vas a cambiar?). If you’re not overwhelmed and jet-lagged, perhaps you can exchange a small amount here, enough to tide you over for a few days. Airports are the most obvious feeding frenzy for trick-bill-folding sharks prowling the waters of gullible tourists. It is not recommended to exchange large amounts of currency at the Airport, unless you are experienced.
Arrival Overland from Colombia- If you are crossing over to Venezuela via Maicao or Cucuta, you may exchange Colombian Pesos for Bolivares in border towns. The bus must stop in the border customs station en route from Colombia to Venezuela.
Traders will approach you when you de-board the bus/taxi for customs procedures. Do not let them convince you that you must hurry because the bus/taxi is going to leave without you. Go in to the Colombian customs building first to get your passport stamp, then deal with the traders. If several traders are present, take a minute or two to shop around amongst them for the best rate, if only to show them that you´re not an easy sucker. Insist that they count out each bill for you, and be watchful of any odd ways of folding bills.
Arrival Overland from Brazil- From Brazil, an overland route exists from Boa Vista. To acquire Venezuelan Bolivares at mercado paraelelo rates, use an ATM in Brazil to acquire Brazilian Reais and exchange these for Bolivares in the border town of Santa Elena. Again, you will be approached by traders waving cash at you upon de-boarding the bus here.
General Tips
1.) Make alliances, trust no one. Don’t trust people just because they are wearing a government uniform, and especially don’t trust people just because they are friendly. With that said, accept that most people out there want to help you rather than rob you. The snoring, overweight guy spilling over in to your seat on the long bus ride, for example- chat him up a little bit if you can, no matter how terrible your Spanish is. He may be the one glaring over your shoulder with a watchful eye at your currency trader at the border as bills are counted out for you.
2.) Be prepared, know your numbers in advance. Know what exchange rate you are ready to accept before you begin bartering, know how much money you are going to trade, and know how much money you should receive. (Note that Bolivares no longer have three zeros written with each denomination. One Bolivar is “1”, rather than “1.000”). It´s not a bad idea to have a calculator handy (like the one on a cell phone or iPod).
3.) Keep cool. Make it clear to your trader that you are the seller, he is the buyer. You are in charge of this transaction. If an unacceptable rate is offered, try someone else rather than put up a fuss.
With a little preparation and confidence, you´ll be able to afford traveling in Venezuela. As with any travel advice, simply having confidence in a positive outcome is your best ally. If you´re still skeptical about the idea, the words of Mark Twain are apropos: “I have known a great many troubles, but most of them never happened.”
Links to research current rates for Dollars to Bolivares
Lonely Planet´s ThornTree Forum
http://www.lonelyplanet.com/thorntree/index.jspa
Virtual Tourist
http://forum.virtualtourist.com
→ If you are planning to reserve a tour or hotel in advance, inquire about exchnage rates via email.
Other notes:
"While visiting Venezuela, U.S. citizens are encouraged to carry as little U.S. currency as possible[...]. Due to the poor security situation, the embassy does not recommend changing money at the international airport. Visitors should bring a major credit card, but should be aware of widespread pilfering of credit card data to make unauthorized transactions. Travelers’ checks are not recommended as they are honored in only a few locations. It is possible to exchange U.S. currency at approved exchange offices near major hotel chains in Caracas (personal checks are not accepted) and at commercial banks with some restrictions. Due to currency regulations, hotels cannot provide currency exchange. There are ATMs throughout Venezuela. Malfunctions are common, however, and travelers should be careful to use only those in well-lit public places. ATM data has also been hacked and used to make unauthorized withdrawals from user’s accounts. ATMs are also targeted by street gangs in order to rob people making withdrawals."
Venezuela has only one currency, the Bolivar Fuerte (Bs.F), but two types of money are available to visitors- the cheap kind and the expensive kind. Since 2003 the government has placed a freeze on the value of the Bolivar, matching the U.S. dollar at 4.23 Bs.F. (It’s actually more complicated than that, but this is the rate you will get from a cajero (ATM) or currency exchange.) At this exchange rate your travel budget will seem more European than South American, perhaps one reason that Venezuela receives considerably fewer visitors than nearby Colombia or Ecuador. In the Mercado Paralelo, however, one can receive a rate nearly twice as favorable- around eight to ten Bs.F to the Dollar (as of 2011). Ka-ching! Think of all the arepas con queso you’ll enjoy with savings like that (not to mention a wildlife viewing trip to Los Llanos.)
As the black market value of the Bolivar will fluctuate, it will be necessary to ask around to get a current quote. (There is no “official” black market quote, at risk of being obvious). If arriving to Venezuela by air this may take a bit of patience, if traveling overland from Colombia or Brazil- just ask anyone near the border. The ”unofficial” exchange rate is a household subject and in no way taboo. It should be noted that the act of trading currency through unofficial channels is indeed illegal, but the act is common enough that the chances of problems with law enforcement are zero to none.
In general there are two ways to acquire Venezuelan Bolivares in the Mercado Paralelo- selling Dollars/Euros, or exchanging Colombian Pesos/Brazilian Reales at a border town. Which method you use depends on your mode of arrival and level of comfort.
Selling Dollars
As in many countries, Venezuelans buy foreign currencies like the dollar as a household investment (dollars by far being preferred). Using this method means you will carry whatever sum of dollars you wish to exchange on your physical person in to Venezuela.
Many individuals and businesses will be willing to purchase dollars from you, though it may be difficult to arrange before you are in the country unless you have trustworthy contacts. If you choose this route, it should not be necessary to exchange in a border town as people throughout the country will be willing to purchase dollars. For the casual tourist, reliable places to ask about selling include hotels/hostels and tour/guide companies. Feel comfortable asking the staff about this topic- as mentioned earlier, it’s not taboo or secret. At the same time, be respectful and ask at a moment when staff are not too busy.
Exchanging Currency at the Border
Trading currency at the border is a less preferable alternative to selling dollars in-country if you are an easily-stressed traveler, but it is common and really quite simple to pull off. If you are arriving overland, you’ll probably want to trade your remaining pesos or reales for pocket change.
Arrival by Airport- You will be approached by persistent young men palming wads of cash once you clear customs (¿Vas a cambiar? ¿Vas a cambiar?). If you’re not overwhelmed and jet-lagged, perhaps you can exchange a small amount here, enough to tide you over for a few days. Airports are the most obvious feeding frenzy for trick-bill-folding sharks prowling the waters of gullible tourists. It is not recommended to exchange large amounts of currency at the Airport, unless you are experienced.
Arrival Overland from Colombia- If you are crossing over to Venezuela via Maicao or Cucuta, you may exchange Colombian Pesos for Bolivares in border towns. The bus must stop in the border customs station en route from Colombia to Venezuela.
Traders will approach you when you de-board the bus/taxi for customs procedures. Do not let them convince you that you must hurry because the bus/taxi is going to leave without you. Go in to the Colombian customs building first to get your passport stamp, then deal with the traders. If several traders are present, take a minute or two to shop around amongst them for the best rate, if only to show them that you´re not an easy sucker. Insist that they count out each bill for you, and be watchful of any odd ways of folding bills.
Arrival Overland from Brazil- From Brazil, an overland route exists from Boa Vista. To acquire Venezuelan Bolivares at mercado paraelelo rates, use an ATM in Brazil to acquire Brazilian Reais and exchange these for Bolivares in the border town of Santa Elena. Again, you will be approached by traders waving cash at you upon de-boarding the bus here.
General Tips
1.) Make alliances, trust no one. Don’t trust people just because they are wearing a government uniform, and especially don’t trust people just because they are friendly. With that said, accept that most people out there want to help you rather than rob you. The snoring, overweight guy spilling over in to your seat on the long bus ride, for example- chat him up a little bit if you can, no matter how terrible your Spanish is. He may be the one glaring over your shoulder with a watchful eye at your currency trader at the border as bills are counted out for you.
2.) Be prepared, know your numbers in advance. Know what exchange rate you are ready to accept before you begin bartering, know how much money you are going to trade, and know how much money you should receive. (Note that Bolivares no longer have three zeros written with each denomination. One Bolivar is “1”, rather than “1.000”). It´s not a bad idea to have a calculator handy (like the one on a cell phone or iPod).
3.) Keep cool. Make it clear to your trader that you are the seller, he is the buyer. You are in charge of this transaction. If an unacceptable rate is offered, try someone else rather than put up a fuss.
With a little preparation and confidence, you´ll be able to afford traveling in Venezuela. As with any travel advice, simply having confidence in a positive outcome is your best ally. If you´re still skeptical about the idea, the words of Mark Twain are apropos: “I have known a great many troubles, but most of them never happened.”
Links to research current rates for Dollars to Bolivares
Lonely Planet´s ThornTree Forum
http://www.lonelyplanet.com/thorntree/index.jspa
Virtual Tourist
http://forum.virtualtourist.com
→ If you are planning to reserve a tour or hotel in advance, inquire about exchnage rates via email.
Other notes:
"While visiting Venezuela, U.S. citizens are encouraged to carry as little U.S. currency as possible[...]. Due to the poor security situation, the embassy does not recommend changing money at the international airport. Visitors should bring a major credit card, but should be aware of widespread pilfering of credit card data to make unauthorized transactions. Travelers’ checks are not recommended as they are honored in only a few locations. It is possible to exchange U.S. currency at approved exchange offices near major hotel chains in Caracas (personal checks are not accepted) and at commercial banks with some restrictions. Due to currency regulations, hotels cannot provide currency exchange. There are ATMs throughout Venezuela. Malfunctions are common, however, and travelers should be careful to use only those in well-lit public places. ATM data has also been hacked and used to make unauthorized withdrawals from user’s accounts. ATMs are also targeted by street gangs in order to rob people making withdrawals."
- Venezuela WikiTravel page:
- A good, but slightly outdated blog article on the subject here:
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