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Venezuela's Inflation Worsens Beyond 720%

Published on 8 February 2017 in News - Pages by Raffick Marday

Venezuela's inflation figures have continued to worsen to the extent that people are now weighing paper notes instead of counting them. With the depreciation hovering around over 700%, the country's largest Bolivar bill now exchanges for a mere 5 US cents. Besides this lamentable downward spiral, currency experts from all over the world project that inflation percentages are set to rise exponentially. Everywhere you look in big towns and key cities, there are thousands of individuals carrying stuffed handbags and backpacks full of paper cash.

To expedite their trade transactions, shopkeepers and peripatetic vendors have reportedly taken to weighing instead of counting the huge wads of cash that customers hand them. Consequently, the standard-size pocket wallet and hand-held purses have become quite obsolete.

Venezuela's Inflation Worsens Beyond 720%

The socialist South American state has toppled nearly every documented money depreciation record over the last two centuries. Analytic evidence points out that the country's teetering economy has every sign indicative of a runaway inflation, and thus argue that the deplorable state of affairs is likely to get exponentially exacerbated by various instabilities in the national economy.

Bank Exchange Rates for Venezuelan Bolívar where global economy pundits cite a myriad of contributors to Venezuela's monetary crisis. Most obviously, poor governance and absence of fiscal policies to counter the soaring menace are among the leading reasons for the swelling inflation rates. Again, the string of events emanating from 2014 plummeting of oil prices evidently decimated the South American republics financial standing.

Further, President Nicolas Maduro's tactless response to the mayhem by ordering banks to print more cash is viewed as an informed layman's approach to an otherwise technical conundrum that required more effective solutions. The president's ill-informed move only led to the devaluation of currency and soaring of the prices of common goods.

Traders Weighing Wads of Cash Instead of Counting Them!

According to Humberto Gonzalez, a delicatessen proprietor in the city, it has proved easier to measure the weight of notes on scales than to count increasingly multiple piles of cash. Speaking to "Bloomberg" - a foremost news network that tried to scrutinise the levels of inflation obtaining this month, Humberto admitted that he's forced to part with less money since he thinks his cheese is worth more than patrons give him.

Scores of other traders in the vicinity certified Mister Gonzalez's confessions as true. Everyone offering services out there, going by first-hand testimonies gathered from the delicatessen's neighbourhood, is coerced to accept somewhat low payments because the money counting procedure has been completely upset by the raging devaluation.

However, leading professional investors have steered clear of the unreliable undependable habit of quantity money on scales. They insist on counting note-by-note, a process that takes a great deal of time, as confessed Jesus Casique, a consulting firm director in the capital city. Oil constitutes 95% of Venezuela's exports and comprises about 25% of the nation's economy. As such, the persistent instability in oil prices continues to subject other top corporation to incessant financial pressure.

Money dispensers in Venezuela

Money dispensers have not been spared the wide-sweeping consequences occasioned by the currency woes, either. A careful observation revealed that ATMs in high-traffic neighbourhoods have to be refilled after about every three hours. Some savvy entrepreneurs have invested in the now lucrative business of exchanging Bolivars for US dollars.

For safety and security reasons, most well-off punters have resorted to online transactions. As the problem steadily built up, Maduro pointed accusing fingers at alleged enemies in the region and a few "crafty" foes in the United States.

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