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DOSSIER – In this photo of May 22, 2018, Venezuelan President Nicolas Maduro greets the guests after receiving from the National Electoral Council, CNE, a certificate declaring him the winner of the presidential election, at a special ceremony. ceremony at the CNE headquarters in Caracas, Venezuela. Maduro announced on Wednesday (July 25th) a monetary reform that will eliminate 5 zeros from the value of the Venezuelan currency. (Ariana Cubillos, Associated Press / File)
CARACAS, Venezuela – President Nicola Maduro unveiled Wednesday his plans to combat galloping inflation at Venezuela – by printing
The announcement comes two days after the International Monetary Fund warned that Venezuelan inflation could exceed $ 1 million this year.
Maduro said the currency conversion would trigger "great revolutionary changes in the economy".
Venezuela is at the top of the world's largest proven oil reserves, but five years have passed since the beginning of an economic crisis characterized by shortages of food and medicines leading to massive migrations.
20.
The paper money is hard to obtain in Venezuela, where the most important note is today the bill of 100,000 bolivars, or about 30 cents. A simple lunch easily costs 3 million bolivars.
The new paper cuts will have cuts ranging from 2 to 500. This represents the purchasing power of 200,000 to 50 million current Bolivar
. taken before to fight against inflation which requires more and more bolivars to make a purchase. In 2008, President Hugo Chavez issued a new currency that eliminated three zeros
In March, Maduro announced that Venezuela would print money with three zeroes less, but it never been executed and inflation continued to climb. On Wednesday, Maduro spoke on national television about his economic team, reaffirming his focus on the failing Venezuelan oil sector, but providing no details to improve crude production.
IMF officials compared the economic turmoil of Venezuela to that of Germany. Me and Zimbabwe at the beginning of the last decade. They said Venezuela's economic fall was among the deepest in the world in six decades.
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