venezuela brings in new currency with 6 fewer zeros
However, the new bills were hard to find in the capital, where consumers’ fears proved to be right that prices would continue to spiral upward.
Prior to the adjustment, the peak denomination was a 1 million bolivar bill – worth slightly less than a quarter as of Thursday.
Venezuela’s new currency tops out at 100 bolivars, slightly less than $25 — but fears are that inflation will start to eat away that as well.
The change is intended to make accounting and cash transactions more straightforward, which are complicated by a string of unwieldy zeroes.
It merits a mention that inflation had led banks to put a limit on how much cash individuals could take out in a day and forced many of the residents to use either US dollars or electronic payment methods.
Furthermore, Venezuela’s gross domestic product or GDP has dropped by 80 per cent since 2013 because the price of oil crashed and output dropped during decades of government mismanagement and under-investment.
The bolivar lost nearly all of its value in just ten years – shedding almost 73 per cent in 2021 alone.
It must be remembered that Venezuela’s central bank does not publish inflation statistics anymore. The IMF estimates that the country’s rate will be at 5,500 per cent at the end of 2021.
As of Friday, the highest denomination was seen as people were asked to pay in cash for one loaf of bread.
In the highly competitive times of crypto mining, economically battered Venezuela has one advantage – extremely cheap electricity.
The energy prices are as low as 0.06 cents per kilowatt/hour; mining cryptocurrencies is exceptionally lucrative in a country riddled by economic uncertainty.
Today in the early morning a fire broke out at the Pulse nightclub in Kočani, North Macedonia. This led to… Read More
Firefighters are fighting against a massive grass fire north of Fredericksburg, Texas. The fire, which had started on Saturday afternoon… Read More
On Friday President Donald Trump used his executive authority to order big budget reductions at seven government agencies including Voice… Read More
According to an internal memo reported by Reuters now Trump administration is considering new travel restrictions on citizens from 41… Read More
In a major counterterrorism operation the United States in coordination with Iraqi security forces, has confirmed the killing of Abu… Read More
According to the U.S. Food and Drug Administration (FDA) more than 75,000 bottles of International Delight coffee creamer have been… Read More
This website uses cookies.
Read More