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Venezuela is going through an unprecedented crisis. President Nicolas Maduro announced on Wednesday that the country's authorities will soon remove five zeros from the currency, the bolivar, while
inflation could reach 1,000,000% this year according to the IMF.
"August 20 starts (…) the economic recovery plan with the currency conversion, five zeros less," said the head of state during a meeting of his cabinet.
"A new stable financial and monetary system" hopes the president
Initially, the president had announced the printing of new notes with three zeros less, a measure that would have had to enter into force on 4 August. The introduction of a new currency had already been postponed at the request of the Central Bank when it was scheduled for June 4.
The measure announced Wednesday by Nicolas Maduro aims, according to him, to "Facilitate financial transactions" and "protect" the bolivar. "Five zeros less to have … a new stable financial and monetary system," said the Venezuelan head of state.
Oil production collapsed
He argues that the economic crisis and The hyperinflation in his country is the result of an "economic war" fought by the Venezuelan right and the United States to overthrow it.
Venezuela derives 96% of its oil revenues. But its production has collapsed by at least half in a year and a half for lack of cash to modernize the oil fields. At present, a Venezuelan minimum wage of 1.5 dollars at the black market rate, the de facto reference, barely allows him to buy a kilogram of chicken.
>> read also: The presales of petro, the virtual currency of Venezuela, started
>> To read also: Nicolas Maduro wins a presidential contested by the opposition
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