A country ravaged by hyperinflation is going through a recession for eight years.
Venezuela cuts six zeros from its inflation-ridden currency. In other words, all amounts processed in currency are divided by one million.
The purpose of the reform, together with the country’s central bank, is to make the Bolivar currency easier to use.
The change will take effect at the beginning of October, when the new banknotes will be issued. The values of the new banknotes are five hundred bolivar. In addition, a single Bolivar coin will be introduced.
Previously the wealthy oil state, known for its fourth year, is in the grip of hyperinflation. From January to May, prices rose 265 percent.
The recession in the country continues for the eighth year. The worst economic crisis in the country in modern times is underway. Inflation is so strong that the daily lives of citizens are largely dependent on dollars, describes the news agency AFP.
The country’s left-wing government tripled the minimum wage in May. Still, the increase was not enough to get a kilo of meat purchased.