Dramatic Rise in Venezuela Inflation Rate Everyday

Venezuela has come fully into the lunacy of the Great Depression. The National Assembly here says that the average price of things is doubling every 26 days. Inflation has reached its peak, even for a cup of coffee people have to pay 2.5 million Bolivar.

Measures Taken to Prevent Rise in Venezuela Inflation Rate :

Whereas for one kilogram of tomatoes people have to give up to 50 lakh Bolivar. In order to control rising inflation, the Maduro government has prepared a new blueprint. Under these new rules, Venezuela’s currency will now be ‘Sovereign Bolivar’ with Bolivar. Also, 95% devaluation of this currency has also been devalued.

The International Monetary Fund estimates that this year Venezuela’s inflation may be up by one million per cent. The situation is likely to be even worse. For new reforms Madurou has issued eight new notes 2, 5, 10, 20, 50, 100, 200 and 500.

Venezuelan Central Bank’s Chief Calicto Ortega has announced that old notes will remain in circulation for a fixed time. Only one thousand notes have been taken out of circulation.Venezuela says that “imperialist forces” have waged a financial war against him.

There will be an increase of 34 times in the minimum wage from September 1. On the new Bolivar, the government is looking at the issue of the virtual currency petro issued for the oil.Although economists say that these methods are not being fooled by the root cause of inflation. They say that the printing of new notes can not be kept in control for long periods of time, rather the situation will worsen.

Due to inflation in Venezuela, the demand for large notes increased, but the banks there decided to limit the amount of withdrawal from the account on all the customers. In this case, the citizens had to bring small notes in big numbers or make online payments. Longer lines have been put out of banks to take new notes.

Economists believe that cash transactions will be easy for some time since this new rule.Now people have to get a thick pocket of notes for a cup of coffee. The largest Bolivar in Venezuela’s old currency was one million. That means one kilogram of tomatoes is 5 million and coffee is 25 million Bolivar.

Erin Blanchard

Erin Blanchard graduated from Queens University with a BA in Arts.  Erin grew up in Ottawa, but moved to Kingston for her studies. Erin has written for several major publications  including the CBC and the Toronto Star. Erin is a community reporter and also covers stories important health developments important to Canadians..

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