Venezuela has begun to import banknote paper and is mulling plans to print bills with larger denominations as hyperinflation causes shortages of cash, according to six people with knowledge of the matter. The country has brought in about 71 tons of security paper this year from an Italian printer majority owned by the private equity firm Bain Capital, according to some of the people and data reviewed by Bloomberg from Import Genius, which compiles customs records it obtains through private sources. The central bank is considering new bills starting with 100,000 bolivars, the people said. It would be the highest denomination yet, but still worth only $0.23.
Press officials for the printer Fedrigoni SpA and Bain Capital declined to comment on the paper shipments, which came from Brazil. The Venezuelan central bank didn’t reply to calls and messages seeking comment. The need for larger bills in Venezuela is a direct result of an ever-weakening currency and inflation that ran at an estimated 2,400% in the past year, meaning that paying for a cart full of groceries now requires a bag of cash. The 100,000 bolivar bill would match the biggest bill ever printed in Venezuela, one made two years ago during the days of the bolivar fuerte (the latest version of the currency is called the sovereign bolivar). The central bank is considering introducing even larger denominations down the line.
Earlier this year, Venezuela turned to a state-owned money printer in Russia to purchase 300 million of new bills after racking up debts with De La Rue, one of the world’s largest makers of bank notes.