Venezuela eliminates another 6 zeros from the national currency

Venezuela, which has faced an economic crisis and a declining bolivar value in recent years, especially under the toughest US sanctions and falling oil prices, has said the main goal is to facilitate day-to-day exchanges.

 In 2007, the first trend of change in the Venezuelan national currency began with the removal of three zeros, and in 2018, eight zeros were removed from the bolivar.

 According to this statement, 10 new banknotes from October.  20, 50 and 100 bolivars will be released and will enter the monetary cycle.

 Inflation in Venezuela was reported to be above 250% between January and May last year (January to June).  Inflation in Venezuela reached 3,000 percent by 2020.  The International Monetary Fund predicts that inflation in the country will rise by more than 5,000 percent this year.

 "They have launched a war against our national currency," Venezuelan President Nicolas Maduro said earlier in an interview with TeleSour, referring to US threats and falling oil revenues.  We are moving towards a deeper digital economy in 2021.  My goal is to achieve an economy that is 100% digital.

 Most cash transactions in Venezuela are based on the US dollar, and the bolivar is mostly used only for electronic money transfers, including bank card payments and bank intermediate transfers.

 Venezuela, once the richest country in South America, has declined in recent years from 12th in 2017 to 21st in 2019, despite having the world's largest oil reserves (more than 300 billion barrels). Venezuela's economic cycles, which have so far revolved around the oil refining and export industry with a 50 percent share of GDP and 95 percent of total exports, have reached their lowest level in 70 years under US sanctions.

 

_{Source & credit: AVC Father's heart - EFE}

^{Photo by Steve Johnson on Unsplash}