Venezuela scraps SIX ZERO’s from its inflation-battered currency to make it easier to use amid the country’s worst economic crisis in its modern history
- “All amounts of money denominated in national currencies are 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, health care
Venezuela will scrap six zeros from its inflation-battered currency, the bolivar, to make it more user-friendly, the central bank said Thursday.
“All amounts of money denominated in national currency will be divided by one million,” said the bank of the beleaguered leftist government of President Nicolas Maduro.
Maduro’s socialism has bankrupted a once prosperous oil-rich nation. Crumbling infrastructure, lack of water and health care have forced 5 million people to emigrate.
The dual effects of the pandemic and the failed oil industry mean Venezuela is going through its fourth year of hyperinflation and its eighth year of recession.
Venezuela will scrap six zeros from its inflation-battered currency, the bolivar, to make it easier to use, the central bank said Thursday (Photo: File photo of a new 10,000 Bolivar bill first issued in June 2019, to show it cope with the ongoing devaluation of the currency)
A mother and her baby are forced to sleep in a cemetery in Caracas (pictured in February)
From January to May, prices have increased by 265 percent.
People mainly trade in US dollars because the currency is so devalued.
In May, the government tripled the monthly minimum wage, but the new amount was not even enough to buy a kilogram of meat.
With the currency review, the central bank will issue new notes with denominations of five, 10, 20, 50 and 100 bolivars and a one-bolivar coin, Communications Secretary Freddy Nanez said on Twitter.
The changes will come into effect on October 1 with the issuance of new banknotes.
The United States has spearheaded a campaign to oust Maduro, increase the pressure with corrosive sanctions and refuse to recognize the president.
A coalition of nearly 60 countries backs opposition leader Juan Guaido as the legitimate leader, saying Maduro’s 2018 elections were a sham as the most popular opposition candidates were barred from running.
Maduro and Guaido will come face to face for talks in Mexico later this month.
The dictator claims he is willing to negotiate with the opposition, but insists that talks should focus on lifting sanctions previously imposed by former US President Donald Trump.
Juan Guaidó, recognized by many members of the international community as the country’s interim president, spoke in May 2019
Guaido has said the opposition wants to use the talks to demand guarantees for free and fair elections, after widespread criticism that previous elections have piled up in favor of the ruling socialists.
Previous talks between the two parties have yielded no significant results.
Maduro and his allies say the Trump administration is determined to end Venezuela’s socialist government from exploiting the South American country’s vast underground oil reserves.
He remains in power, backed by the military and with international support from Cuba, Russia, China and Iran.