In recent years, Venezuela has experienced severe inflation. The huge currency denomination has brought a lot of inconvenience to cash transactions and bookkeeping. From October 1, local time, Venezuela officially launched the new currency, which is 6 zeros less than the old currency.
new version Venezuelan currency and the old version of the currency exchange ratio of 1:1 million, which is equivalent to removing 6 zeros from the old version of the currency.
The largest denomination of the old currency is 1 million Bolivar , which can only be exchanged for about 25 cents on September 30. The maximum denomination of the new currency is 100 bolivars, which can currently be exchanged for approximately 25 U.S. dollars.
This is the third time that Venezuela has issued a new currency since 2007, and 14 zeros have been removed in total. Some Venezuelans still doubt how long the effect of the new currency will last.
Bus driver in Caracas, Venezuela:
"The only thing that is good for us is that we don’t have to put so much cash in our pockets. Nothing else, because the price has not dropped. It has been rising.”
Affected by factors such as sanctions by the United States and other countries, fluctuations in international oil prices and changes in the domestic situation, Venezuela’s inflation problem has become serious in recent years. In 2019, the inflation rate is close to 9600%, and in 2020 it is close to 3000%. At present, the Venezuelan central bank no longer publishes inflation statistics. According to estimates by the International Monetary Fund, the country’s inflation rate in 2021 will reach about 5500%.In May of this year, the Venezuelan government doubled the minimum monthly wage of the people, but even so, the adjusted amount is still not enough to buy one kilogram of meat. A research report released recently stated that three-quarters of Venezuela’s population is now in extreme poverty.
Source: Xiaoqiang Hotline Zhejiang Educational Science Editor Lu Ruitian
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