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Venezuela to cut 6 zeros from its currency due to hyperinflation

Venezuelan President, Nicolas Maduro. Photo: www.aa.com.tr

Venezuela will today launch its second monetary overhaul in 3 years by cutting 6 zeros from the bolivar currency in response to hyperinflation, simplifying accounting but doing little to ease the South American nation’s economic crisis.

According to Reuters, the plan seeks to simplify accounting at businesses and banks, where systems can no longer handle the huge figures. Venezuela’s year-on-year inflation is 1,743%, according to the Venezuelan Finance Observatory. A minimum wage salary is barely $2.50 per month.

President Nicolas Maduro’s government in 2018 removed 5 zeros from the currency due to high prices. That came a decade after the late President Hugo Chavez subtracted 3 zeros from the bolivar with the promise of single-digit inflation, which was not achieved.

The once-prosperous OPEC nation is suffering a years-long economic crisis that has led millions of Venezuelans to emigrate.

Banks have begun receiving some low-denomination bills of the new family of notes, which will for a time co-exist with existing 500,000- and 1 million-bolivar notes.