menu

Homepage > News > Bolivar will lose 6 zeros. Venezuela makes another denomination

Bolivar will lose 6 zeros. Venezuela makes another denomination


This Friday, Venezuela will dominate the bolivar by cutting it down by six zeros. This will be the third measure of this type used by the country in the last 13 years.

The Venezuelan government is making another attempt to facilitate the use of the bolivar, battered by the highest inflation in the world. Its year-on-year index will reach 5,500% in this country, which is still a good result because this South American country has already broken the millionth records here. Venezuela’s central bank ensures that the denomination does not imply a reduction in the currency’s value and is caused by the facilitation of settlements.

Banks announced that they would freeze operations for several hours from Thursday to Friday to make a correction. Until now, 7,000,000 bolivars have been paid for a loaf of bread in the nation’s capital, Caracas. From Friday, the highest denomination in Venezuela will be 100 Bs, or around $0.25. Until now, the most valuable banknote was one million Bolivars of the same value ($0.25).

14 zeros less in 13 years

Friday’s shift marks the third zeros cut from the bolivar in the last 13 years of Venezuela’s socialist leadership. The country’s previous president, Hugo Chavez, made his appointment in 2008. The currency then lost three zeros. Another slimming bolivar happened in 2018 when five zeros were cut from it. In 2018-2019, however, inflation was so high that the effects of the denomination were lost after a year and a half.

Despite receiving their salaries in millions of bolivars, three out of four Venezuelans currently live in extreme poverty. The 43-year-old teacher Marelys Guerrero, interviewed by the French AFP, said that he had earned around $3 for 2 weeks in recent days. The coronavirus pandemic also aggravated the country’s economic collapse, and there are no signs that new denominations and government actions will improve this situation.

Author: Daniel Hill

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.



Ad:
exante baner

Last news:

FCA's Executive Director says the number of frauds will continue to increase

FCA warns against remote desktop fraud

UK financial regulator has warned again against desktop sharing scams. As of July 2020, 2,142 ...
Read More
Criminals cheat victims by promising to help them recover their money

Criminals cheat victims by promising to help them recover their money

Australian Scamwatch warns against offers of upfront recovery assistance. These types of scams target people ...
Read More
British court blocks class action against banks

British court blocks class action against banks

The Competition Court of Appeal (CAT) in London blocked a planned forex class action lawsuit ...
Read More
FX trading volume on the Moscow Stock Exchange fell 28.6% in March

FX trading volume on the Moscow Stock Exchange fell 28.6% in March

On Monday, the Moscow Exchange (MOEX), the largest stock exchange group in Russia, published turnover ...
Read More

Add a comment

Your email address will not be published. Required fields are marked *

 

Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top