President Nicolas Maduro announced on Sunday that all 100-bolivar (8p) notes, currently the largest denomination, would be withdrawn from circulation on Wednesday.

Venezuelan authorities have accused Colombian organised crime gangs of smuggling warehouses full of the notes out of the country to print counterfeit US dollars on the paper.

The 6.1 billion 100-bolivar notes in circulation make up 48 per cent of legal tender.

Mr Maduro said the trade, which he claims has contributed to the currency shortages that have seen Venezuelans

queuing for an hour to withdraw cash, was destabilising the economy and society.

He said the illicit trade was not limited to Colombia, with huge quantities of notes detected in Germany, Ukraine and the Czech Republic.

“There are entire stores of 100-bolivar notes in Cucuta, Cartagena, Maicao, Bucaramanga,” Mr Maduro said.

“About 300 million bolivars are estimated to be in the hands of international mafia groups based in Colombia, as part of the economic coup.”

The president also said that part of the plan is to block the notes returning to Venezuela.

“I have given the orders to close all land, maritime and air possibilities so those bills taken out can’t be returned and they’re stuck with their fraud abroad.”

But some economists warned the move would cause chaos and may exacerbate the currency shortage.

With one US dollar fetching around 5,000 bolivars on the black market — which in itself has caused hyperinflation over the official exchange rate of 12.50 bolivars to the pound — the racket is lucrative.

Venezuelans have 10 days to exchange their 100-bolivar notes for coins and the new bills ranging from 500 and 20,000 bolivars which will be issued this week.

That will mark a return to the days before the government lopped three zeros off all denominations at the beginning of 2008 when it issued the “bolivar fuerte” or strong bolivar currency.