Dear MEL Topic Readers,
Venezuela 'paralysed' by launch of sovereign bolivar currency
Much easier to calculate but still uncertain about the value of the new currency. Venezuela, an oil-rich South American country has been suffering hyperinflation this year. Prices are spiraling out of control, accompanied by plunging currency values, leading consumers to carry kilograms of banknotes to buy a roll of toilet paper. Supply-demand pricing mechanism has not been taking place in the country. So, the government decided to revalue and rename the old bolivar currency to a new one by slashing five zeros. For example, the price for a cup of coffee changed from 2.5million bolivars to 25. The move seems to make the lives of Venezuelans easier but doesn’t assure if the economic turmoil is going to be solved or eased.
Enjoy reading and learn how hyperinflation affects the lives of ordinary citizens and what redenomination of the currency could mean.
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