Venezuela was yesterday flat by the introduction of a new currency. President Maduro replaced the old bolivar by the ‘bolivar soberano ” to the towering inflation in his country to tackle.
Thousands of shops were yesterday closed to adapt to the new currency, and many workers remained at home out of uncertainty. Also the banks were closed. So far there are no reports of violence or protests, although the security services in the whole country in a state of readiness.
With the launch of the new notes and the revaluation of the old bolivar, the government wants the hyperinflation in the country to curb. So were Monday five zeros from the banknotes shall be deleted. That means that a cup of coffee, worth 2.5 million bolivars today 25 ‘sovereign bolivars’ costs.
In addition, the government announced-Maduro last week that the new currency will pair to the petro, the cryptomunt which was announced in February. But according to The Time , doubtful analysts or the petro a workable financial instrument is.
Venezuela is in a severe economic and political crisis since the collapse of the oil prices four years ago. The International Monetary Fund (IMF) predicts that the inflation in the South American country this year, one million percent will achieve.
According to figures from the United Nations this year, more than 500,000 Venezuelans fled due to shortages of food and rising crime.