The changes begin on Monday by the introduction of the currency of the sovereign bolivar, which has cut five zeros from the previous one. Maduro also said that he would raise petrol prices internationally. The combination of these measures will, according to critics, aggravate the situation in the country.
Source: SITA / AP / Fernando Llano
Opposition leaders hope to strike
Opposition leaders opposed the tensions between people calling for a national strike on Tuesday, August 21st. They hope that the streets of cities will be flooded with massive protests against the ruling Madura socialist party – something they have not been able to do for more than a year.
Source: SITA / AP / Ariana Cubillos
Banks will be closed today while they are preparing for the release of a sovereign bolivar, which is five pounds less, to help the government overcome the huge inflation. Madura's government also announced that by the end of September even the cheapest gasoline in the world will be expensive to limit its uncontrolled smuggling across borders.
Source: SITA / AP / Ariana Cubillos
Economists argue that the government's package of measures is likely to speed up hyperinflation, instead of tackling major economic problems such as the fall of oil production to levels of 1947. The devaluation of the currency and its replacement as & # 39; new & # 39; are only labeled as a cosmetic treatment that does not really change anything. Recommendations on the street markets in Caracas were longer than normal on Saturday (18 August). People tried to pay in advance because of the uncertainty that awaited them this week. Many of them were frustrated by "bank card readers" who were slow or unable to transact, forcing some to leave empty-handed.
Source: SITA / AP / Ariana Cubillos
Customers must be patient
"You have to have patience," the grain seller said to a growing customer line. Many other stores remained closed because they did not know what prices they had to set for their goods. Venezuela was once the most prosperous country in Latin America thanks to the enormous oil reserves, the largest in the world.
Source: SITA / AP / Ariana Cubillos
But the recent fall in commodity prices coupled with corruption and poor management for two decades of the socialist regime historically caused the worst economic crisis. Inflation in the country could amount to 1 million percent this year in the context of the International Monetary Fund.
More than 10,000 liters of petrol per cent
High and steadily rising inflation at the same time complicated payments with banknotes. The largest bank of the end currency was one hundred thousand dollars less than three cents (2.63 cents) according to the exchange rate of the black market. A cup of coffee cost more than 2 million bolivariants. The new currency has two coins and banknotes worth between 2 and 500 sovereigns. The lowest banknote corresponds to the value of 200,000 existing bolnavars, while the highest is 50 million "old" bolivars.
Source: SITA / AP / Fernando Llano
The Venezuelan president Nicolás Maduro has already announced changes. The country is heading for a historic economic downturn. Changes begin with the introduction of new banknotes that have been erased for five zeros. Hyperinflation pushes prices into astronomical figures. About the value devalued by Venezuelan painters show the photos published by Reuters.
Source: SITA / AP / Fernando Llano
For example, a 2,4 kg chicken is sold for 14,600,000 Bolivar, which is less than two euros. The roll of toilet paper is sold for 2,600,000 bolivariants (35 cents). Venezuela has the lowest petrol prices in the world, a US cent can now buy 2896 gallons of gas according to Reuters. You can buy up to 11,000 liters of petrol per cent.
Maduro reported a sharp rise in the minimum wage
The old and new names remain in circulation during the transition period. The government took a similar step in 2008 when President Hugo Chávez issued a new currency and overtook three outs in the fight against rising inflation.
Source: SITA / Miraflores presidential palace
Maduro also announced a strong increase in the minimum wage by more than 3,000% on Friday, rising to around $ 30 on the black market. It is not clear when this change comes into effect. The president was even more confused when he said he wanted to link wages, prices and pensions to the oil-covered cryptoma oil. This Venezuela was introduced in February, but it is still out of circulation. According to the president, the value of a petro will be $ 60.
Source: SITA / AP / Ariana Cubillos
It will be a day of confusion
"The next days will be full of confusion for consumers, even for the private sector, especially traders," said Asdrúbal Oliveros, director of Ecoanalítica in Caracas. "It's a messy script." Opposition politicians and unionists said on Sunday (August 19) that they call Tuesday for national strike and protest.
Source: SITA / AP / Fernando Llano
"The published measures are not a plan for economic recovery for the country," said opposition leader Andrés Velásquez. "On the contrary, they represent more hunger, more poverty, more suffering, more pain, more inflation and further deterioration of the economy." Business owners are worried that a sudden wage increase will prevent them from paying employees without a sharp price increase, which is reflected in an acceleration in inflation.
Source: SITA / AP / Ariana Cubillos
Source: SITA / AP / Fernando Llano
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