Mubasher TV
Contact Us Advertising   العربية

Venezuela to circulate bigger banknotes as hyperinflation takes heavy toll

Venezuela to circulate bigger banknotes as hyperinflation takes heavy toll

Mubasher: Venezuela plans to issue large-denomination bolivar bills as a wild hyperinflation eats into the currency’s value and complicates everyday purchases in the crisis-torn nation, Bloomberg reported.

The Central Bank of Venezuela (BCV) iwould start to roll out the 10,000, 20,000 and 50,000 denomination banknotes, for “more efficient” payments and “[facilitated] business transactions,” the news outlet cited the central bank’s statement on its website.

Last August, the government devalued the embattled currency by 95%, issuing new banknotes in which five zeros of the previously circulated bills were slashed.

A soaring six-digit inflation has made banknotes useless in the Latin American country, where consumers use plastic and electronic transactions, and increasingly depend on the US dollar or other foreign currency.

Nevertheless, payments are still made in bolivars for services like public transportation and regulated commodities like gasoline.

The latest government data the monthly inflation rate at 34% last April, down from a peak of 197% in January.

However, Venezuela’s annual rate of inflation is currently at 99,900%, which came down from 224,900% at the end of last year, according to Bloomberg’s Cafe Con Leche Index.