Girish Gupta

HOME

PHOTOS

VENEZUELA ECON

ONLINE

Twitter
Instagram
Facebook
LinkedIn
AngelList
Keybase
GitHub
IFTTT

BY COUNTRY

Afghanistan
Brazil
Colombia
Cuba
Ecuador
Egypt
Guyana
Iraq
Jordan
Lebanon
Mexico
United Kingdom
Venezuela

BY MEDIUM

Text
Photo
Radio
TV/Video

BY PUBLISHER

Al Jazeera
Americas Quarterly
BBC
BuzzFeed
CBC
Christian Science Monitor
CNN
Daily Mail
Data Driven Journalism (EJC)
Datum
Ecologist
Economist Intelligence Unit
Emerging Markets
Financial Times
Foreign Policy
France 24
Fusion
GlobalPost
Guardian
Independent
La Prensa (Panama)
LatinFinance
Mancunion
Monocle
National (Abu Dhabi)
New Internationalist
New Statesman
New York Times
New Yorker
NPR
PBS
PRI
Radio France Internationale
Reuters
RTE
Sky News
Sun
Sunday Times
Telegraph
TIME
Times of London
USA Today
Vice
WLRN

ABOUT

girishgupta.com
About (old)


Venezuela confirms bigger bills amid world's highest inflation
Dec. 4, 2016 — Caracas, Venezuela

Venezuela will introduce six new notes and three new coins starting in mid-December to help alleviate practical problems in doing business with the world's most inflationary currency, according to the central bank.

Currently, the OPEC nation's largest note is worth just 2 U.S. cents on the black market, meaning cash transactions are extremely cumbersome.

The bolivar currency has suffered its most dramatic monthly fall in history, down 60 percent since early November against the dollar on the black market, as the country struggles with a major economic crisis that is leaving millions hungry and the medical sector in crisis.

The largest new bill, according to a central bank communique, will be worth 20,000 bolivars, just under $5 on the streets. It will be accompanied by notes of 10,000, 5,000, 2,000, 1,000 and 500 bolivars and three coins of smaller value.

"(This) will make the payments system more efficient, facilitate commercial transactions and minimize the costs of production, replacement and transfer ... which will translate into benefits for banking, trade and the general population," the central bank said.

Paying a restaurant or supermarket bill without a debit or credit card can often require a backpack full of cash. However, even getting cash at ATMs in recent months has proven difficult.

On Friday, the country's point-of-sale machines suffered chronic malfunctions. Unable to process transactions, businesses asked customers to use cash, transfers or pay later.

President Nicolas Maduro blamed the problems on a cyber attack, but he did not provide any evidence. He attributes the country's economic crisis to an "economic war" led by the opposition with a helping hand from Washington.

Strict currency controls introduced in 2003, which pegged the bolivar to the dollar, coupled with heavy reliance on oil are seen as the root of the crisis by most economists.

Venezuela's central bank has failed to publish any inflation data for 2016. The International Monetary Fund estimates that price rises next year will surpass 2,000 percent.

The money supply, the sum of cash and checking deposits as well as savings and other "near money" deposits, was up a staggering 12 percent in the two weeks to Nov. 25 and the curve is literally exponential since Maduro's predecessor Hugo Chavez came to power in 1999.

Filed from
Caracas, Venezuela






More...

Hacking Venezuela’s Crisis from Silicon Valley
Apr. 25, 2019


Venezuelan soldiers are increasingly deserting and rebelling as the presidential election nears
May. 19, 2018


Disaster Data: Journalist's New App Sheds Light On Venezuela's Economic Catastrophe
Feb. 19, 2018


Advisers urge deep discount in Venezuelan cryptocurrency offering
Jan. 16, 2018


Inflationary math
Dec. 12, 2017


Venezuela money supply up 14 percent in one week, fastest rise on record
Dec. 1, 2017


How a defrocked judge became the chief enforcer for Maduro's Venezuela
Nov. 15, 2017


De cómo un juez destituido se convirtió en el principal artífice judicial del presidente de Venezuela
Nov. 15, 2017


The 'Venezuela Econ' app: Harnessing data to understand a spectacular economic meltdown
Nov. 6, 2017


Venezuela's monthly inflation rises to 34 percent: National Assembly
Sept. 7, 2017


Ousted Venezuelan prosecutor says she fears for her life, will keep fighting
Aug. 10, 2017


Venezuela quells attack on military base, two killed
Aug. 6, 2017


Exclusive: Venezuelan vote data casts doubt on turnout at Sunday poll
Aug. 2, 2017


All eyes on Venezuela military after protests, vote
Aug. 1, 2017


U.S. 'sweetheart' of Venezuela sees worrying signs of authoritarianism
Jul. 29, 2017








© Girish Gupta