The situation is a far cry from the Venezuela that is known for its diverse natural attractions. Some of its top attractions include Angel Falls, Los Roques Archipelago, Margarita Island, Morrocoy National Park, Roraima and the Orinoco Delta.

Venezuela has a population of nearly 32 million people. The country shares borders with Colombia and Guyana as well as the North Atlantic Ocean and the Caribbean Sea. The official language is Spanish and most Venezuelans have a good command of the language. Indigenous languages are also considered to be official languages.

If you are travelling to Venezuela soon, be prepared to carry hefty wads of cash when you exchange your hard currency for the local one. In fact, it could get even more cumbersome as the Venezuelan bolivar slides further into unchartered territory.

The official currency of Venezuela is the Venezuelan bolivar (VEF). With the ongoing hyperinflation in the country, it is difficult to predict what will become of the VEF. So bad is the situation that there are reports of people turning to stealing to avoid starving.

Just recently, the government released bigger denomination banknotes in a bid to reduce the burden of citizens having to carry abnormally large amounts of the previous banknotes. Banks are now issuing denominations as big as 20,000 bolivar notes.

  Currently, one VEF is equivalent to approximately 0.10 US dollars or 0.078 British pounds, although it’s difficult to give a stable figure under the current circumstances.

  The sharp drop in oil prices is one of the factors that have been blamed for the Venezuelan bolivar’s woes. Food prices have also skyrocketed causing further damage to the value of the bolivar. There is an increasing number of Venezuelans who have to cross the border into Colombia to find Colombian dollars for purchasing food and medicine.

  At this point, it is fair to say that Venezuela’s currency is virtually worthless.

Venezuela is one of the countries in South America where the movement of cocaine is rife. The country’s endemic corruption makes it very exposed to money laundering or other economic crimes. Most of the laundered funds come from the thriving drug trade in the region.

This is the main reason why the government maintains strict money transfer controls. For instance, individuals and private firms are required to request authorisation from the government’s currency commission when purchasing hard currency for their imports or other uses.

At the same time, any government ministry spending hard currency on any public procurement has to request dollars from a central bank coordinated intra-governmental committee. Private financial institutions are not allowed to hold any deposits of hard currencies. So anyone trying to launder dollars has to pass through the government’s formal financial system.

Venezuela’s action plan of 2010 defines all the money transfer rules and the sanctions for those who contravene.

Using any foreign currency obtained through illegal means attracts a prison term of between two to six years. In addition to the prison term, there is also a fine equivalent to twice the amount of money so acquired. These sanctions also apply to foreign currency obtained through legal mechanisms but used for other purposes other than the one stipulated in the request.

Anyone who wants to transfer foreign currency to or from Venezuela is obligated by law to declare to the authorities if the amount exceeds the equivalent of $10,000 in any currency.

With the current economic and political events in Venezuela, the climate remains unsuitable for many financial transactions. The Venezuelan bolivar continues to lose value and even locals are turning to currencies of neighbouring countries like Colombia to survive.

The hyperinflation is a big challenge for banks which have to deal with having to constantly adjust their system as financial arithmetic evolves constantly.

The best way to send money directly to a recipient’s account in Venezuela is through a bank deposit. Depending on the specific bank’s processing times, a Master Card or Visa deposit can take between a few hours and three days to reflect in the recipient’s bank account.

Cash pickups are more important than ever as people in the diaspora try to send money to assist their struggling relatives in Venezuela. The quick transaction times and the short time it takes for money to reach the recipient is a big reason why cash pickups are the choice of many in Venezuela and abroad.

The charges are also minimal which makes it easy to send money to multiple recipients without feeling unnecessarily overburdened by transfer charges.