Venezuela issues first three new banknotes

After some delays the first new banknotes in Venezuela have finally entered circulation. These new notes have been issued by the Central Bank of Venezuela in an attempt to deal with the hyperinflation that has crippled the country's economy. Inflation in Venezuela is expected to reach 1,600% this year... 

There was mayhem in Venezuela mid-December when President Maduro suddenly announced that the 100-bolivares notes would be removed from circulation. The reason was to stop the assumed hoarding of 100-bolivares notes by criminal groups. Venezuelans quickly had to exchange their banknotes, but banks refused to accept them because they had no larger denominations in exchange. There was looting in the streets and burning of the 100-bolivares notes, because people believed they had become worthless pieces of paper. Because of the chaos President Maduro was forced to allow the 100-bolivares notes to remain in circulation.

For now the notes of 500-, 5,000- and 20,000-bolivares have been issued. The other denominations are expected soon. If it will help Venezuela is anybody's guess because the highest denomination of 20,000-bolivares is still only worth about $6 on the black markets. 



Steven Tuesday 17 January 2017 at 9:24 pm | | news
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