Connect with us

International

Venezuela to slash six zeroes from currency

AFP

Venezuela will slash six zeroes off its inflation-battered currency the bolivar to make it easier to use, the central bank said on Thursday.

The change will take effect on October 1 with the issuance of new currency notes, called the digital bolivar.

“All monetary amounts expressed in national currency will be divided by one million,” the central bank of President Nicolas Maduro’s beleaguered leftist government said.

It said the goal of the change is to “facilitate” the use of the bolivar.

Advertisement
20250301_vacunacion_vph-728x90
20241211_mh_noexigencia_dui_728x90
20231124_etesal_728x90_1
20230601_agenda_primera_infancia_728X90
domfuturo_netview-728x90
20240604_dom_728x90
CEL
previous arrow
next arrow

It is the third time in 13 years that Venezuela — suffering the worst economic crisis in its modern era — has used such a measure.

In August 2018, the government lopped five zeros off its bank notes, having taken off three in 2008.

In 2018, the government replaced the ironically named strong bolivar with the sovereign bolivar.

The once-wealthy oil producer is enduring its fourth year of hyperinflation and its eighth year of recession.

From January through to May prices rose 265 percent.

Advertisement
20250301_vacunacion_vph-728x90
20241211_mh_noexigencia_dui_728x90
20231124_etesal_728x90_1
20230601_agenda_primera_infancia_728X90
domfuturo_netview-728x90
20240604_dom_728x90
CEL
previous arrow
next arrow

Inflation was almost 3,000 percent in 2020 and more than 9,500 percent the year before, according to central bank figures.

“It was an expected decision,” economist Cesar Aristimuno, director of Aristimuno Herrera & Associates, told AFP.

“By itself it was necessary … the billing and accounting processes for companies were already practically impossible.”

People had even resorted to using a shorthand for prices, saying “thousands” instead of “millions.”

There is such a shortage of bolivars that long queues are a regular sight outside banks.

Advertisement
20250301_vacunacion_vph-728x90
20241211_mh_noexigencia_dui_728x90
20231124_etesal_728x90_1
20230601_agenda_primera_infancia_728X90
domfuturo_netview-728x90
20240604_dom_728x90
CEL
previous arrow
next arrow

Transactions made in the local currency are usually done by card payment or bank transfer rather than in cash.

Inflation is so bad that the everyday economy now works mainly in dollars, with many stores listing prices in the US currency.

Back in May the government tripled the minimum monthly wage but the new amount was still not even enough to buy a kilogram of meat.

However, Aristimuno warned that while “convenient” this measure will not transform Venezuela’s battered economy.

“We cannot hope for economic miracles from this decision, taking into account that … it comes without any underlying economic announcements” that could reduce inflation or boost GDP.

Advertisement
20250301_vacunacion_vph-728x90
20241211_mh_noexigencia_dui_728x90
20231124_etesal_728x90_1
20230601_agenda_primera_infancia_728X90
domfuturo_netview-728x90
20240604_dom_728x90
CEL
previous arrow
next arrow

The Maduro government is under international sanctions championed by the United States, which is pushing for his ouster and does not recognize him as the country’s legitimate president.

With the currency overhaul, the central bank will issue new notes with face values of five, 10, 20, 50 and 100 bolivars and a one-bolivar coin, Communications Minister Freddy Nanez said on Twitter.

Continue Reading
Advertisement
20250301_vacunacion_vph-300x250
20241211_mh_noexigencia_dui_300x250
20231124_etesal_300x250_1
20230601_agenda_primera_infancia_300X250
MARN1

International

Trump urges Putin to reach peace deal

On Monday, U.S. President Donald Trump reiterated his desire for Russian President Vladimir Putin to “reach a deal” to end the war in Ukraine, while also reaffirming his willingness to impose sanctions on Russia.

“I want to see him reach an agreement to prevent Russian, Ukrainian, and other people from dying,” Trump stated during a press conference in the Oval Office at the White House.

“I think he will. I don’t want to have to impose secondary tariffs on Russian oil,” the Republican leader added, recalling that he had already taken similar measures against Venezuela by sanctioning buyers of the South American country’s crude oil.

Trump also reiterated his frustration over Ukraine’s resistance to an agreement that would allow the United States to exploit natural resources in the country—a condition he set in negotiations to end the war.

Continue Reading

International

Deportation flight lands in Venezuela; government denies criminal gang links

A flight carrying 175 Venezuelan migrants deported from the United States arrived in Caracas on Sunday. This marks the third group to return since repatriation flights resumed a week ago, and among them is an alleged member of a criminal organization, according to Venezuelan authorities.

Unlike previous flights operated by the Venezuelan state airline Conviasa, this time, an aircraft from the U.S. airline Eastern landed at Maiquetía Airport, on the outskirts of Caracas, shortly after 2:00 p.m. with the deportees.

Interior Minister Diosdado Cabello, who welcomed the returnees at the airport, stated that the 175 repatriated individuals were coming back “after being subjected, like all Venezuelans, to persecution” and dismissed claims that they belonged to the criminal organization El Tren de Aragua.

However, Cabello confirmed that “for the first time in these flights we have been carrying out, someone of significance wanted by Venezuelan justice has arrived, and he is not from El Tren de Aragua.” Instead, he belongs to a gang operating in the state of Trujillo. The minister did not disclose the individual’s identity or provide details on where he would be taken.

Continue Reading

International

Son of journalist José Rubén Zamora condemns father’s return to prison as “illegal”

Guatemalan court decides Wednesday whether to convict journalist José Rubén Zamora

The son of renowned journalist José Rubén Zamora Marroquín, José Carlos Zamora, has denounced as “illegal” the court order that sent his father back to a Guatemalan prison on March 3, after already spending 819 days behind barsover a highly irregular money laundering case.

“My father’s return to prison was based on an arbitrary and illegal ruling. It is also alarming that the judge who had granted him house arrest received threats,” José Carlos Zamora told EFE in an interview on Saturday.

The 67-year-old journalist was sent back to prison inside the Mariscal Zavala military barracks on March 3, when Judge Erick García upheld a Court of Appeals ruling that overturned the house arrest granted to him in October. Zamora had already spent 819 days in prison over an alleged money laundering case.

His son condemned the situation as “unacceptable”, stating that the judge handling the case “cannot do his job in accordance with the law due to threats against his life.”

Continue Reading

Trending

Central News