Change of currency cone in Venezuela is impossible at the moment

In the opinion of the economic expert, currently we do not have enough economic resources in Venezuela that they had in 2007, when the president of the then Hugo Chávez made the conversion, when the barrel of oil exceeded $ 100.

The change announced by President Maduro would involve the circulation of new banknotes, the transition from Bolívar to Bolívar Soberano with the reduction of five zeros of the currency. With the deflation of the new currency cone, 50,000 Bolivars equals 0.50 sovereign bolivars; 100 thousand bolivars, 1 bolivar; one million bolivars, 10 bolivars; 10 million bolivars, 100 bolivars and 20 million bolivars, 200 bolivares

Ñañez explained that in this case the possibility of conversion is nothing but deflating the currency. "By eliminating three zeros to the coin, he multiplied 1 in a thousand, there the millions converted them into thousands." With this new measure, five zeros are eliminated, multiplying 1 per 100,000. "

The economist has asserted that this measure has no impact on the reduction of hyperinflation, since the ability of citizens to pay for goods and services will remain Affected.

Money without insurance

Bolívar has no confidence in the terms of the deal, let alone anchor himself in cryptoactivity backed by oil reserves that do not trust. they are converted or liquid, explains Ñañez. "At the Central Bank of Venezuela, there are 500 million liquid dollars.It is absurd to place the barrels of the oil belt as an asset, because this is not likely to be accounted for." [19659003] The professor at the School of Economics of the University of Carabobo considers that if no real action is taken, disconnected the situation will worsen, even if the crisis is currently unmanageable.

Given the fact that inflation in June was 128.4%, inflation is expected to reach more than one point by the end of the year. 200 percent, placing Venezuelan hyperinflation fifth among the most serious cases in the history of humanity, comparable to those of Hungary, Greece and Zimbabwe. "Hyperinflation has become a mechanism of social control, because Venezuelans are constantly being kept in search of immediate satisfaction, basic needs, strictly basic elements"

The exchange of currencies is one of the measures to tackle hyperinflation, but it is not a necessary and sufficient condition because it there is no confidence in this instrument. We must put into practice a set of orthodox measures from the monetary and fiscal point of view. In the monetary sphere, you must prohibit the issuance of money without backup, you must put discipline in the financial mess and spending, you must be independent to stabilize, detailed the specialist.