Venezuela extends use note in economic crisis

● Decision comes after claims transport planes were ‘sabotaged’

Venezuela’s government has extended the use of its 100-bolivar bill until 2 January after its decision to pull the banknote out of circulation left the country largely without cash and triggered protests and looting.

President Nicolas Maduro said the decision to put Venezuela’s most widely used note back in use came after the promised higher-denomination replacement bills were still unavailable because three planes transporting them were “victims of sabotage”. He did not give details of the alleged sabotage.

The “new logistics” of rolling out the banknotes, including the 500-bolivar bill, meant their launch would have to wait, Mr Maduro said.

Venezuela is plagued by the world’s highest inflation and Mr Maduro made the surprise announcement that the 100-bolivar bill would be replaced a week ago.

The note had been the country’s largest denomination but its value against the US dollar has dropped to about two cents – down from ten cents at the start of the year.

All week, Venezuelans waited in long lines to deposit their soon-to-be-worthless 100-bolivar notes in banks.

When the bill went out of circulation on Friday and the replacement bills had not yet arrived at banks or ATMS, people were forced to rely on credit cards or bank transfers, or make purchases with bundles of hard-to-find smaller bills often worth less than a penny each.

Anger at having to deal with an economy even more paralysed than usual has sparked serious social unrest.

“Our children are going hungry,” said Lucrecia Morales in Caracas. “We are parents who earn money with the sweat off our brows. And now they say it is worthless? We need a solution.”

Authorities said there were protests and looting on Friday and early on Saturday in at least six cities, including Maracaibo and the eastern state of Bolivar, wheremobssackedseveral businesses.

Young men waved their 100-bolivar bills in the air, chanting “they’re useless”, and then turned and ran as police fired tear gas canisters. Dozens were arrested.

In Caracas, people banged on pots and cursed the government’s apparent lackofplanning.therewas no cash to be seen changing hands on the street or inside shops.

On Saturday, hundreds of government supporters and ruling party members dressed in red shirts marched in Caracas to back Mr Maduro and protest at the “economic war” against Venezuela.