Venezuela confirms bigger bills amid world’s highest inflation..issues new banknotes

People line up to withdraw cash from an automated teller machine (ATM) outside a Banco de Venezuela branch in Caracas, Venezuela November 25, 2016. Picture taken November 25, 2016. REUTERS/Marco Bello

People line up to withdraw cash from an automated teller machine (ATM) outside a Banco de Venezuela branch in Caracas, Venezuela November 25, 2016.

http://mobile.reuters.com/article/worldNews/idUSKBN13T0MJ

Venezuela will introduce six new notes and three new coins starting in mid-December to help alleviate practical problems in doing business with the world’s most inflationary currency, according to the central bank.

Currently, the OPEC nation’s largest note is worth just 2 U.S. cents on the black market, meaning cash transactions are extremely cumbersome.

The bolivar currency has suffered its most dramatic monthly fall in history, down 60 percent since early November against the dollar on the black market, as the country struggles with a major economic crisis that is leaving millions hungry and the medical sector in crisis.

The largest new bill, according to a central bank communique, will be worth 20,000 bolivars, just under $5 on the streets. It will be accompanied by notes of 10,000, 5,000, 2,000, 1,000 and 500 bolivars and three coins of smaller value.

“(This) will make the payments system more efficient, facilitate commercial transactions and minimize the costs of production, replacement and transfer … which will translate into benefits for banking, trade and the general population,” the central bank said.

Paying a restaurant or supermarket bill without a debit or credit card can often require a backpack full of cash. However, even getting cash at ATMs in recent months has proven difficult.

On Friday, the country’s point-of-sale machines suffered chronic malfunctions. Unable to process transactions, businesses asked customers to use cash, transfers or pay later.

President Nicolas Maduro blamed the problems on a cyber attack, but he did not provide any evidence. He attributes the country’s economic crisis to an “economic war” led by the opposition with a helping hand from Washington.

Strict currency controls introduced in 2003, which pegged the bolivar to the dollar, coupled with heavy reliance on oil are seen as the root of the crisis by most economists.

Venezuela’s central bank has failed to publish any inflation data for 2016. The International Monetary Fund estimates that price rises next year will surpass 2,000 percent.

The money supply, the sum of cash and checking deposits as well as savings and other “near money” deposits, was up a staggering 12 percent in the two weeks to Nov. 25 and the curve is literally exponential since Maduro’s predecessor Hugo Chavez came to power in 1999.

http://www.bbc.com/news/business-38201575

Venezuela is issuing new higher-value notes to help deal with some of the practical problems of soaring inflation.

A backpack full of cash is often required to pay bills at a restaurant or supermarket.

The central bank said that six new bills ranging from 500 to 20,000 bolivars would come into circulation on 15 December.

Currently the largest note is 100 bolivars and worth about two US cents.

Over the past month, the currency has tumbled by 60% against the dollar on the black market.

“[This] will make the payments system more efficient, facilitate commercial transactions and minimize the costs of production, replacement and transfer … which will translate into benefits for banking, trade and the general population,” the central bank said.

———

“Venezuela will introduce six new notes and three new coins”

dont worry about the coins..they wont be required..

“A backpack full of cash is often required to pay bills at a restaurant or supermarket.”

need a shoebox of coins to pay for a parking meter..

“Currently the largest note is 100 bolivars and worth about two US cents.”

yep..

401

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~ by seeker401 on December 8, 2016.

2 Responses to “Venezuela confirms bigger bills amid world’s highest inflation..issues new banknotes”

  1. Two steps closer to a “one” world currency they are. No monies wasted updating their system, just a few more tweaks and the tower falls.

  2. Venezuela to swap highest denomination banknotes for coins

    http://www.bbc.com/news/world-latin-america-38284485

    The Venezuelan government has announced it will replace the country’s highest-denomination banknotes with coins within 72 hours.
    It hopes swapping the 100-bolivar notes will help to stop smuggling and tackle shortages of food and other items.
    President Nicolas Maduro says gangs operating in border areas will not have time to repatriate the notes.
    His critics dismissed the move as the latest desperate attempt by Mr Maduro to tackle the economic crisis.
    “When ineptitude governs! Who would possibly think of doing something like this in December amid all our problems?” opposition leader Henrique Capriles wrote on Twitter (in Spanish).
    Others argued it would be impossible to swap all the 100-bolivar notes in circulation in the time allotted.

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