Maduro Postpones Issuing New Currency in Venezuela

He Managed to Make Every Venezuelan a Millionaire

HAVANA TIMES – In the country with the world’s largest oil reserves, President Nicolas Maduro has already made every Venezuelan a millionaire. However, that does not mean that they can eat decently or buy the medicines or basic products they need.

Today a dollar is exchanged on the street at a rate of 1.4 million bolivars and the devaluation of the currency continues unchecked. At this time, a minimum monthly wage does not reach two USD dollars.

To facilitate business and a lack of cash currency in circulation a couple of months ago, Maduro proposed putting new banknotes in circulation, removing three zeros from the current denominations.

However, the Venezuelan government announced today that the monetary reconversion planned for June 4th will be postponed until August 4th, the day when they say the new banknotes will be put into circulation with three less zeros than the current ones.

The decision to postpone the currency exchange was made after evaluating a proposal from the Venezuelan Banking Association, which proposed to Maduro to extend the deadline to 90 days to make the necessary tests for the new banknotes, reported the website dollartoday.com.

Maduro had already accepted the suggestion to postpone the measure, but now proposed a period of 60 days.

The Finance Committee of the National Assembly (controlled by the opposition but with its functions suspended) also proposed postponing the conversion, claiming that the conditions for applying the new currency were not ready. In addition, they insist that any such measure should be accompanied by an anti-inflationary plan because inflation rose by 14,000 percent in the last 12 months.

The Government urged the banks to adapt their platforms and equipment “in order to put into operation, and under optimal conditions, the new monetary cone (family of banknotes), and in this way facilitate the financial transactions of the population and protect our currency.”

This will be the second monetary reconversion in 10 years, in the middle of a hyperinflationary wave that hits the country.

At the beginning of 2017, the Government put into circulation the current banknotes with a family consisting of 1,000, 2,000, 5,000, 10,000, 20,000, 50,000 and 100,000 bolivar’s fuertes, which entered into circulation with delays.

The highest value bill, of 100,000 bolivars, barely buys a cup of coffee and is equivalent to less than 10 cents USD on the black market.