The monetary meltdown in Venezuela

[Zorro]

Venezuela has run out of cash. Not metaphorically, mind you: The country literally doesn’t have enough cash to go around.

Two weeks ago, facing an acute shortage of paper money, bank regulators capped cash withdrawals at 10,000 Venezuelan bolivars per day — about $5.25.

As I write this, following an almighty rout on the black market, those same 10,000 bolivars are worth less than half that much: $2.17. (By the time you read this, the real number’s likely lower.)

Stop and think about that: How on earth can a country work when the most cash anyone there is allowed to withdraw from their bank account in a day is two bucks and change?

https://www.washingtonpost.com/opinions/global-opinions/the-monetary-meltdown-in-venezuela/2016/12/02/094daa50-b80e-11e6-a677-b608fbb3aaf6_story.html

[COLGATE4]

1. It's now like Zimbabwe or the Weimar Republic. People taking bundles

of worthless currency in wheelbarrows to buy something - anything tangible before it loses even more of itds value. The promise of Chavez's Bolivarian Revolution come home to the masses.

[Eugene]

2. Venezuela to issue new bolivar banknotes after dramatic fall in value

Source: Reuters

Venezuela to issue new bolivar banknotes after dramatic fall in value

Reuters
Sunday 4 December 2016 16.49 GMT

Venezuela will introduce six new notes and three new coins from 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 US cents on the black market, meaning cash transactions are extremely cumbersome.

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Read more: https://www.theguardian.com/world/2016/dec/04/venezuela-20000-bolivar-banknotes-economic-crisis