The removal of the 100-bolivar note from circulation in Venezuela has been extended until January 2.
Initially, minimal opposition was expected, but the change has resulted in protests. The demonetization of 100 bolivar bills led to vast lines at banks, looting at shops and anti-government protests. The bills were expected to be exchanged into 500, 2,000, and 20,000 bolivar notes and coins of equal value but the supply for the exchange was delayed.
The bill is worth nearly 15 US cents at the highest official rate (and as low as $.02-.04), and accounted for 77 percent of the cash in circulation in Venezuela. Nearly 40 percent of Venezuelans lack bank accounts making reliance on electronic exchanges more difficult. Venezuela has the world's highest inflation rate.
As the administration believes that Colombia and Brazil mafia groups are hoarding Venezuelan currency, borders with Colombian and Brazil will remain closed until further notice to limit black market activity.
In regards steel transactions, various steel firms in Venezuela stated that most transactions in the industry use electronic devices for payment and will not be limited by the removal of the low denomination note.