Venezuela’s currency has lost 99.999% of its value during the six years of hyperinflation, forcing the country to issue larger banknotes. On Friday, the nation’s central bank announced new plans to unveil the highest valued banknote of one million bolivars.
— Banco Central de Venezuela (@BCV_ORG_VE) March 5, 2021
When the central bank revealed the new bills, Director and Partner at Ecoanalitica, economist Asdrubal Oliveros, said the banknote is good for nothing more than public transport – one of the few services reliant on the paper bolivar.
For example, here is Bloomberg’s Cafe Con Leche Index – which tracks the price of a cup of coffee served piping hot at a cafe in eastern Caracas… it now costs 2.7975 million bollivars (up 3000% from a year ago)…
During hyperinflation, the country has imported greater and greater amounts of paper to issue more banknotes. Venezuela imported 71 tons of paper from Italian money printer Fedrigioni (majority-owned by US Private Equity giant Bain Capital) to print new bolivars in late 2020. – READ MORE
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