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Venezuela: inflation adding zeroes to Bolivares

The Central Bank of Venezuela (Banco Central de Venezuela) preparing to issue banknotes in higher denominations next year as rampant inflation reduces the value of a 100 Bolivar bill to just 14 US cents on the black market.

 

The new notes of 500 and possibly 1,000 Bolivars are expected to be released sometime after congressional elections are held on December 6, said a senior government official who isn't authorised to talk about the plans publicly.

 

Many Venezuelans have to carry wads of cash in bags instead of wallets as soaring inflation and a declining currency increase the number of bills needed for everyday purchases. The situation is set to get worse. Inflation, already the fastest in the world, could end the year at 150 per cent, said the official.

 

The government stopped releasing regular economic statistics in December, when it reported inflation had reached 69 percent.