Venezuela’s biggest bank note gets new stay of execution

CARACAS: Venezuelan President Nicolas Maduro again delayed removing the country’s largest bank note from circulation, after a botched plan to retire it triggered violent protests.

The 100-bolivar note will now remain legal tender until January 20 instead of the second, “so everyone can spend their New Year’s in calm,” Maduro announced in a national address.

The central bank meanwhile announced the arrival of new 20,000bolivar bills, meant to replace the old money as Venezuela grapples with the world’s highest inflation rate - set to hit 475 per cent this year, according to the International Monetary Fund.

As Venezuela flounders through a devastating economic crisis, inflation has gutted the value of the bolivar.

The 100-bolivar note is worth just 15 US cents at the highest official exchange rate, leaving Venezuelans stuck carrying huge stacks of them for even minor purchases.

Maduro triggered riots and looting two weeks ago when he tried to pull the 100-bolivar bill from circulation before replacements had arrived - leaving Venezuelans desperately short of cash for food and Christmas presents.

The leftist leader alleged international ‘mafias’ were hoarding 100-bolivar bills abroad in a USbacked conspiracy.

But after his move to pull it from circulation triggered unrest, he extended its life until January 2.

Venezuela has been rocked by low prices for its key export, oil.

Now in its third year of a deep recession, it is facing severe shortages of food, medicine and basic household goods. — AFP