Maduro cuts three zeros of the bolivar to kill hyperinflation

Maduro cuts three zeros of the bolivar to kill hyperinflation

A measure already took Hugo Chavez and try to solve the alarming lack of cash.

The Bolivarian government aims to digitize the most of the payment system as a long – term solution. Maduro announced four places paying the ‘petro’ will be allowed. Hyperinflation advances to 13.000%.

Venezuelan President Nicolas Maduro announced a new currency redenomination process in which the national cash reduced by three zeroes numbering. With the value of the bolivar completely devoured by hyperinflation in the South American country, which is heading the 13.000% annually, the Bolivarian leader will try to return value to its currency, increasingly used in the streets of Venezuela. This measure will come into force on June 4.

“I have decided to cut three zeros from the currency and remove from circulation the current monetary cone and circulate a new cone with three zeros less than the currency,” said the president during a ceremony televised by the presence of his ministers. A measure already adopted Hugo Chavez in his last term. “Currency will stabilize the lives of our people,” he said.

Cash shortage in the country is alarming with restricted remittances that financial institutions offer users daily. Thus, to cope with everyday business actions it seems too complicated for the Venezuelan population. In fact, the government’s intention is to digitize full payments, including government assistance programs.

The biggest ticket is now 500 bolivars (about $ 11.3 change) according to the rate of two currencies. The above paper highest value Bs 100,000, will become one of 100. In addition, the new currency coins will consist of 0.5 and 1 bolivar notes 2, 5, 10, 50, 100, 200 and 500 bolivars.

The announcement was made in the middle of an act to explain the benefits that national criptodivisa ‘petro’ Bolivarian generated in the economy. A token backed by the country’s oil reserves which aims to recover the flow of dollars into the country despite international blockades. Donald Trump announced this week a ban on the purchase of this digital record, which considers direct financing of one of the country’s enemies route.

Maduro also announced four places where the payment with the ‘petro’ be allowed: Margarita Island, the Caribbean island archipelago of Los Roques, the border with Colombia and the Paraguana Peninsula.

 

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