The Venezuelan opposition assured that the recent monetary reconversion announced by the Maduro regime will be lost in a few months

Former Venezuelan opposition deputy José Guerra assured on Tuesday that the new currency reconversion, for which six zeros will be eliminated from the local currency – the bolivar – and that it will come into force on October 1. it can be lost “in months” if a program to combat hyperinflation is not put in place.

“While this update of the currency cone is not tied to an economic program to end hyperinflation and grow the economy, that the monetary reconversion will be lost in months, perhaps in a year “Guerra explained in a video released by the opposition.

In his opinion, this can happen “because the causes of hyperinflation are still there and the monetary cone again loses its attributes to facilitate and make the transaction possible ”.

On October 1, when the converted currency enters circulation for the third time this century, the current sovereign bolivar will be renamed the digital bolivar.

The six zeros that will be removed from the room are added to the eight others, already eliminated during the two previous conversions, when The currency changed from a bolivar – without a surname – to a strong bolivar and, later, sovereign.

Despite the name of the new currency, it will not be digital, but he will have bills and coins.

Due to hyperinflation and constant devaluation, the highest denomination currently in circulation, the million sovereign bolivars, trades for around 25 cents and its purchasing power is practically non-existent.

In front of this situation, the Venezuelan economy is experiencing transactional dollarization and companies are struggling to balance their balance sheets because of the large number of zeros they have to write.

Faced with this reality, Guerra said that the new monetary restructuring “has only one goal”, that of “facilitating trade, the acquisition of goods and services”.

“This is just a cosmetic change to facilitate transactions”, he asserted.

The last monetary reconversion, which created the “Sovereign Bolivar», Took place in August 2018. Since 2008, Chavismo has removed eight zeros from the change and with this new change there are already 14 zeros in total..

In the press release issued on August 5, it is detailed that the measure implies that all monetary amounts “will be divided by 1,000,000(This implies the elimination of six zeros) and emphasizes that does not affect the current value of the bolivar, otherwise what “will be reduced to a simpler monetary scale for ease of use”.

The issuing entity also stressed that this decision comes at a time when “the country begins the path of economic recovery”.

The new monetary cone which will come into force consists of five new invoices (100, 50, 20, 10 and 5 bolivars).

(With information from EFE)

KEEP READING: