Venezuela changes the monetary unit of its currency

[yota691]

Venezuela changes the monetary unit of its currency

 08/05/2021

 

 1997

 

Baghdad / Al-Mawrid News

 

The Central Bank announced today that Venezuela will change the monetary unit of its currency and will delete 6 zeros from it for the second time in 3 years to fix the deteriorating local currency, the Bolivar, in light of the collapse of the economy.

President Nicolas Maduro cut five zeros from the currency in 2018, in an effort to simplify complex transactions and accounting processes.

"The value of the bolivar will not change in any way, and in order to simplify its use, its monetary unit has been simplified," the central bank said in a statement.

[markb57]

this is like a major LOP isn't is since it's off the currency, not the value?

[md11fr8dawg]

Communist DON'T care!!

[yota691]

Venezuela: a race to get rid of the local currency before deleting 6 zeros

 

Sunday - 29 Dhu al-Hijjah 1442 AH - 08 August 2021 AD Issue No. [15594]

 

 

The Central Bank of Venezuela announced that it will cut six zeros from the local currency, the Bolivar (Reuters)

London: «Middle East»

Everyone in Venezuela is trying to get rid of the current cash before writing off six zeros from the local currency, the bolivar on October 1, which was announced Thursday.
This will be replaced by a new issuance of banknotes due to hyperinflation in the country in crisis with almost the entire economy pegged to the dollar in recent months. Many still prefer to buy food rather than deposit their banknotes in the bank.
At her vegetable stand in Caracas, Marisela López desperately wonders what she will be able to do with her soon-to-be-disappeared old bolivar banknotes that are frequently used by her customers to pay for their purchases. "We all have to get rid of the money quickly because we don't know what will happen next and what we will do with this currency," the 34-year-old said, expressing concern about the upcoming exchange rate.
The inflation rate reached 400 thousand percent in 2018, about ten thousand percent in 2019 and three thousand percent in 2020, which led to a rise in commodity prices and a decline in the interest of the US dollar, which is popular with residents and companies in this country of 30 million people. .
But the huge amounts of banknotes allow you to buy only a small amount of vegetables or a small piece of meat. The last time the Central Bank issued new notes in March, their face value was 200,500,000 bolivars.

 

 

But these three banknotes with a total value of 1.7 million bolivars are worth only 60 cents at the official rate. Today it is worth no more than 42 cents.
And since a rumor spread about this upcoming change in the currency in circulation two weeks ago, "the bolivar, which disappeared for a while, has begun to reappear," according to Carmen Ramirez, a 48-year-old meat seller. According to Agence France-Presse.
"We no longer use the bolivar here, only foreign currencies," she said with astonishment. She hopes that "the government achieves its goal this time and that there will be no further depreciation of the currency that will lead us to the abyss."
With the devaluation of the bolivar, many stores and supermarkets display prices in dollars and accept electronic payment systems from bank accounts abroad.
Marisela Lopez explained that she paid half the price of her vegetables in foreign currency and the other half with a card often used to make bank transfers. "In the streets we find banknotes on the ground, we throw banknotes and we burn banknotes and we don't respect them anymore," she said sorry.
Foreign exchange is strictly controlled by the government, which has led to the emergence of a parallel black market. Venezuelans rely on the parallel market price of the dollar to calculate the real exchange rate. With the announcement of the monetary change, the dollar rose again.
The failure of previous measures to combat hyperinflation - three zeros were removed in 2008 and another five in 2018 - leads many Venezuelans to question the feasibility of striking out six zeros.
"They crossed out a lot of zeros (14 in 13 years) from the bolivar and nothing has improved," said Armando Olivier, 70, a clothes seller. He added, "When they started writing off zeros, we thought that the value of the currency would rise and that it might become a strong Bolivar, but this was ridiculous because it does not correspond to reality."

[md11fr8dawg]

Communism at it's best!!! How many times will this be that they have deleted zeros off their useless currency??

If Government touches it, it usually turns to Shiite!!

 

[TinBadge]

This is what happens when the central bank prints money that’s not needed. Think about it - 30 million people no money in the streets - The bank print 300 million notes, and sends  everybody 10 Notes. That $10 that everybody has is now very important and valuable. Prices are driven by the fact that people only 10 bank notes each and they want a lot of product for a single note.  
so what happens when the bank decides to dump a 100 billion notes into this small economy?  Now that 30 million population now has pockets full of money. Is that single note so important now?  Before you demanded four meals for a $1 at the restaurant because you only had 9 more left. Now you have a pocket full of them so $10 per meal seems ok. Now expand this theory out. How much did the restaurant pay for the food after the new money was printer?  How much more did the farmer have to pay for the seed, animals and employees?  If you understand the economy of money you can see how price is driven by the amount of note in the system.  It’s more complicated then this but this is how it start in a sterile environment.  
Our country’s population is 330 million people. Our central bank keeps printing money every week sense 2019 just nonstop!  WHEN does the money supply reach the tipping point???  WHEN do people stop caring how much they pay for a product? WHEN do prices spin out of control because people aren’t  paying attention.  Again it’s more complicated than this but this is how it hits your wallet. And with the central banks in charge of the world’s economy this will happen everywhere in time.