Prices of 2,00,000 and 5,00,000 bolivars at the current exchange rate – the value of 10 and 27 US cents, respectively – began to circulate on March 15.
Venezuela is rolling out large denomination banknotes this week as hyperinflation hits the Bolivar currency of the troubled South American country.
The current exchange rates began to circulate on March 15, with the value of 2,00,000 and 5,00,000 bolivars respectively – equal to 10 and 27 US cents respectively. Reuters Witness. Venezuela’s central bank said it planned to roll out a US $ 50 million bill this month for $ 1 billion.
The highest denomination bill was previously 50,000 bolivars. Annual inflation in the once prosperous OPEC nation was running at 2,665% in January, contributing to the chronic shortage of cash.
“Nothing will be worth these bills in a few months, because prices rise very quickly in this country,” said Rafael Alvarez, a healthcare activist, who took four bills at one bank for 200,000 bolivar bills and 50,000 billives each. . All of that is equivalent to just 20 US cents.
The central bank did not respond to a request for comment.
In addition to the high-denomination bill, President Nicolas Maduro is seeking to promote digital payments due to cash shortages. While Venezuela uses debit cards for day-to-day transactions, some services – namely public transit – still accept only cash.
“These new bills will not solve the cash crisis. They will only pay for the transit fare, ”said Evelyn Mendoza, a 47-year-old cook, as she waited in a long line to withdraw cash from a bank in the capital Caracas.
.
Leave a Reply