The bolívar was adopted by the monetary law of 1879, replacing the short-lived venezolano at a rate of 5 bolívares = 1 venezolano. Initially, the bolívar was defined on the silver standard, equal to 4.5 g fine silver, following the principles of the Latin Monetary Union. The monetary law of 1887 made the gold bolívar unlimited legal tender, and the gold standard came into full operation in 1910. Venezuela went off gold in 1930, and in 1934 the bolívar exchange rate was fixed in terms of the U.S. dollar at a rate of 3.914 bolívares = 1 U.S. dollar, revalued to 3.18 bolívares = 1 U.S. dollar in 1937, a rate which lasted until 1941. Until February 18, 1983 (now called Black Friday (Viernes Negro) by many Venezuelans), the bolívar had been the region's most stable and internationally accepted currency. Since then, however, it has fallen prey to high devaluation. Exchange controls were adopted since February 5, 2003 to limit capital flight, pegged to the U.S. dollar at a fixed exchange rate of 1600 VEB to the dollar.
