Bs.S 500 banknote will lose 90% of its value in December if hyperinflation does not stop



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Caracas.- Member of the Finance Committee of the National Assembly (AN), Deputy José Guerra, said Sunday that, due to the hyperinflation experienced by Venezuela, the new 500 Bolívares Soberanos bill – the highest denomination of the currency cone that should come into effect on August 4 loses 90% of its value for December, being "unusable".

"The 500 bolivars (ruler), currently 500,000, would have a value in December of 50 or 60 bolivars, for which it would be necessary to make another reconversion" also warned the economist at the time. an interview in the program Dialogue with … which transmits Televen. 19659003] He said that only 20 days after the implementation of the monetary reconversion, there are several doubts, such as the arrival of the new family of tickets to the country and that they were already distributed at the bank, he assured that financial institutions must have the parts to "update and calibrate the teller machines", process that should be ready by August 4.

"If these notes (of the new currency cone) begin circulating on August 4, it is very likely that they will be unusable at the end of the year due to hyperinflation," .

In this regard, he reiterated that within the Government and the Central Bank of Venezuela (BCV) "they propose not to remove the three zeros of the current cone, but to eliminate six zeros and preserve the investment that has been made in the notes ", which, according to Guerra, exceeds $ 300 million.

However, he warned that eliminating six zeros from the currency "would create other complications", such as paying for gasoline, fixed telephony and other public services, "because that there would be no room to make these payments ".

"In any case, if there is no plan to stabilize the economy and stop hyperinflation, the monetary cone will die at birth", note .

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