In the latest international example of new notes debuting, with a change across the land — no it is not India, but rather Venezuela this time.
As Reuters reported, Venezuela will debut six new notes, along with three new coins, mid-month. The new currency is designed to alleviate what the newswire termed “practical problems” tied to the most inflationary currency seen globally. The move has been instigated by the central bank. The largest note in the nation translates into a paltry two U.S. pennies. And that is on the black market, said Reuters.
The newest bill, and the largest, will be worth 20,000 bolivars, which translates to about $5 on the black market. There will also be notes issued for 10,000, 5,000, 2,000, 1,000 and 500 bolivars. There will be coins issued that will have smaller values below the 500-bolivar note. The cash has grown so unwieldy, said Reuters, that some consumers truck notes around in backpacks. ATMs have been malfunctioning. The country’s leadership has said that a cyberattack was behind the ATM problems, which occurred this past Friday (Dec. 2).
As measured against the dollar, the currency has declined as much as 60 percent in the last few weeks, as the economy has spurred, in its weakness, widespread hunger and other socioeconomic ills.
The physical supply, noted Reuters, was increased by 12 percent just last month.