Venezuela slashes SIX ZEROES from its inflation-battered currency to make it easier to use amid the country’s worst economic crisis in its modern history
- ‘All monetary amounts expressed in national currency will be divided by one million,’ the central bank said in a statement on Thursday
- Nicolas Maduro’s socialism has bankrupted the once prosperous oil-rich nation
- 5 million people have emigrated to escape poverty, lack of water, healthcare
Venezuela will slash six zeroes off its inflation-battered currency the bolivar to make it easier to use, the central bank said Thursday.
‘All monetary amounts expressed in national currency will be divided by one million,’ the bank of President Nicolas Maduro’s beleaguered leftist government said.
Maduro’s socialism has bankrupted a once prosperous oil-rich nation. Crumbling infrastructure, lack of water and healthcare has forced 5 million people to emigrate.
The twin effects of the pandemic and failed oil industry mean Venezuela is enduring its fourth year of hyperinflation and its eighth year of recession.
Venezuela will slash six zeroes off its inflation-battered currency the bolivar to make it easier to use, the central bank said Thursday (pictured: file photo of a new 10,000 Bolivar note first issued in June, 2019, to cope with continued devaluation of the currency)
A mother and her baby are forced to sleep in a cemetery in Caracas (pictured in February)
From January through May prices have risen 265 percent.
People mainly deal in American dollars because the currency is so devalued.
Back in May the government tripled the minimum monthly wage but the new amount was still not even enough to buy a kilo of meat.
With the currency overhaul, the central bank will issue new notes with face values of five, 10, 20, 50 and 100 bolivars and a one-bolivar coin, Communications Minister Freddy Nanez said on Twitter.
The changes will come into effect on October 1 with the issuance of new currency notes.
The United States has led a campaign to oust Maduro, increasing pressure with biting sanctions and refusing to recognise the president.
A coalition of nearly 60 nations backs opposition leader Juan Guaido as the legitimate leader, saying Maduro’s 2018 election was a sham because the most popular opposition candidates were banned from running.
Maduro and Guaido are due to come face-to-face later this month for talks hosted in Mexico.
The dictator claims he is willing to negotiate with the opposition but insists that talks must focus on lifting sanctions first imposed by former US President Donald Trump.
Juan Guaidó, recognized by many members of the international community as the country’s interim president, speaking in May, 2019
Guaido has said the opposition wants to use the talks to push for guarantees of free and fair elections, following broad criticism that past elections have been stacked in favor of the ruling socialists.
Previous talks between the two sides have not produced significant results.
Maduro and his allies say the Trump administration is determined to end Venezuela’s socialist government to exploit the South American nation’s vast underground oil reserves.
He remains in power, backed by the military and with international support from Cuba, Russia, China and Iran.