The Venezuelan Central Bank on Monday began circulating nine million new 1,000-bolivar (46.5 U.S. cents) coins, which will gradually replace the existing banknote, the bank said.

The center of the new coin is made from a copper-nickel alloy and the outer ring from an alloy of tin, copper and aluminum, bearing the inscription BCV 1000.

Its size is smaller than the existing 500-bolivar (23.5-cent) coin. The bank didn't explain why the coin with a larger face value would be smaller but observers said it was likely a step to reduce the introduction price of the new money.

Bolivia's current coins are 1, 2, 5, 10, 20, 50, 100, 500 and 1,000 bolivars; and its notes are 1,000, 2,000, 5,000, 10,000, 20,000 and 50,000 bolivars.

The smallest 1-bolivar coin is worth around 0.05 U.S. cents. The 50,000-bolivar note is worth about 23 dollars.

The country is expected to increase the number of its BCV coins to 200 million during 2007.

Source: Xinhua