Venezuela is suffering from extreme inflation. The central bank has therefore now decided to remove six zeros from its currency from October and to give the money a new name.
Venezuela was once a rich country, nothing of that can be felt any more. The population suffers from poverty and poor care. In the face of hyperinflation and severe economic crisis, the country will delete six zeros from its currency from October. All sums in the national currency Bolívar “will then be divided by one million,” the country’s central bank announced on Thursday. The new digital currency, the “digital bolívar”, will also apply from October.
Inflation in Venezuela is reaching extreme levels
The change does not change the value of the currency, but makes it easier to use. One euro currently costs 4.78 million bolívar. After the changeover, 4.7 Bolívar Digital would then be due for the euro.
The central bank announced in February that inflation in 2020 was nearly 3,000 percent. The oil-rich South American country has been in a serious crisis for years. In 2019, the price increase was almost 9,600 percent. At the same time, the currency fell dramatically in value. It wasn’t until the summer of 2018 that five zeros were deleted from the local currency.
Oil production in the country with the largest reserves in the world has fallen to its lowest level in at least 80 years. In the face of the humanitarian crisis, around 5.6 million Venezuelans have left their homes.
This video was recorded about two years ago and gave an impression of the crisis in Venezuela at the time.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
