Venezuela launches million bolivar banknotes, which equals less than a dollar

CARACAS (AP) .- The Central Bank of Venezuela (BCV) announced the issuance of three new banknotes, with which the paper money with the highest face value increases from 50,000 to one million bolivars in this South American country plagued by four-digit annual inflation.

In a statement released on Thursday, BCV said that As of Monday, the new 200,000, 500,000 and 1,000,000 bolivar coins will begin to circulate. “These new notes complete and optimize the current monetary cone, to meet the requirements of the national economy,” added the bank briefly on its website, without giving further details.

The new bill for a million bolivares – the highest denomination – equals 0.529 cents at the average exchange rate published by the Central Bank at the close of business on Friday.

Venezuela is in its sixth year of recession and its people are hit by high food prices and low dollar wages, in an inflationary spiral that condemns millions to live in poverty. Inflation in January reached 55.2% according to an economic analysis office which responds to opposition leader Juan Guaidó and which measures the increase through a national consumer price index. In the same month, the cumulative price increase has reached 3478%.

Right now they need more than 37 pieces of the rare 50,000 tickets to buy a kilo of onions, the price of which varies almost every day and on Thursday it came at a cost of 2.3 million bolivars, or $ 1.22. Most Venezuelans earn less than two dollars a month.

In recent years, the shortage of paper money has also worsened. Average clientele of Venezuelan banks they can barely withdraw a maximum of 400,000 bolivars in cash per day, depending on the volume of parts available in each bank branch. Consequently, Most Venezuelans are required to pay using electronic instruments. For many, the ability to make a purchase with paper money in retail stores is next to impossible.

THE NATION

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