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The president's call "economic stimulus package" involves two more zeros than those that were expected.
The Venezuelan president announced on Wednesday that he would eliminate five zeros from the Venezuelan currency. The measure is taken after the expected inflation that could reach 1 000 000% for this year in the country.
"On August 20, the economic stimulus package begins with the currency reconversion, five zeros less," said the president at a meeting with his executive cabinet.
According to Maduro, the measure aims to "facilitate financial transactions" and "protect" the local currency.
"Five zeroes less, so we have a new financial and monetary stability system," said the head of state.
According to Maduro, hyperinflation is caused by a "war" against the local currency, which includes extracting banknotes "in serious shortages" to other countries, such as Colombia.
The new monetary system that will be implemented in the neighboring country "will have a basis for exchange and exchange based on the digital oil or Venezuelan currency, whose price is determined according to the value of the Venezuelan oil basket, "Maduro added without further explanation.
The price of current bills, which have only a decade of traffic, has become insufficient for more than a year, when inflation, which exceeded 2,600% in 2017 according to Parliament, triggered prices. [19659004]
For its part, the opposition to the Maduro government, blames it for the mismanagement of the Venezuelan economy.
NewsRCN.com
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