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CARACAS.- To fight against a galloping inflation rate
Venezuela
that this year
could reach 1,000,000%, according to the IMF, the president
Nicolás Maduro
yesterday announced a monetary reform that envisages the elimination of five zeros to the bolivar.
Maduro said that the new monetary unit, referred to as "sovereign bolivar", will enter into circulation from August 20 as part of a "recovery program" to deal with the severe economic crisis that plagues the country.
In a speech broadcast on radio and television, the president said that the new monetary unit involves the elimination of the current denominations of 1000, 2000, 5000, 10000, 20000, 50 000 and 100,000 bolivars, which Maduro himself put into circulation between 2016 and 2017 to partially reduce the exponential rise in prices.
Now, a 50-cent coin and a 1-bolivar coin will be used, in addition to eight different bank notes for each of the following denominations: 2, 5, 10, 20, 50, 100, 200 and 500 bolivars, carried forward .
The measure, which originally provided for the elimination of the zeros of June, which had already been postponed to August 4 at the request of the banking sector, are part of a "program of stimulus ", he said.
Maduro seeks to boost economic activities, which have been affected by the serious shortage of banknotes in a scenario of hyperinflation and scarcity of commodities. [19659008Leprésidentétaitoptimistebienqu'ilreconnaissequelesrévolutionnairescommeilss'appellenteux-mêmeslespartisansduprojetduprésidentHugoChávez"ontéchoué"engrandepartieparl'app"d'unfauxmodèleproductifd'State"prétendêtresocialisteilnel'apasétéetnel'estpas"selonlesrésultatsIlaajoutéqu'ilespèrequelareconversionentreautresmesurespermettra"degrandschangementsrévolutionnairesdansl'Venezuela'seconomyrequirebadtraordinaryandnecessarysupport"
The International Monetary Fund estimated last Monday that Venezuelan inflation would reach one million later this year, comparable to that experienced in Germany at the beginning of the 20th century and in Zimbabwe at the beginning of the last decade.
The Government of Venezuela ceased to publish periodically official figures in 2004. For a decade, it has not allowed the IMF conducts annual reviews of its eco indicators nomics, to which all its member countries are bound.
An exhausted model
Maduro, who is identified in the polls as the main culprit of the crisis, attributes high prices and scarcity of commodities to an "economic war" provoked by political opponents and businessmen to destabilize his country. Government
However, the president's critics argue that the economic crisis is essentially the result of the depletion of the exchange and price control systems, which have been in place since 2003, among other restrictive measures. which ended up undermining the productive and commercial activities of
Maduro, without giving further details, also indicated that he sent to the ruling Constituent Assembly an invoice for that "sovereign bolivar" or linked to the digital currency supported by his government, called petro, whose price is determined by the value of the Venezuelan oil basket
In March, the president has American Donald Trump issued a decree that banned the Americans from entering into a financial deal with the petroleum.
This and other sanctions imposed on Venezuela by the Trump government, especially after the Venezuelan presidential elections in which Maduro was re-elected for another six years, and which are generally considered a sham, include a ban on Americans lend money to the Maduro government, which has significantly reduced the country's funding sources.
The presidential elections of May 20 were marked by international and boycott of the main opposition parties, who alleged the lack of conditions to ensure a fair and transparent election.
Maduro also announced the sending to the Constituent Assembly, which supposed in August last year the powers of the National Assembly, dominated by the opposition, a draft new law on illegal trade, which would focus on Imitation of barriers to trade with foreign currencies. The scope of this bill was not clear.
The governor also announced the exemption of all taxes on the importation of "equipment, machinery and raw materials".
Agencies AP and AFP
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