Venezuela to issue new banknotes
CARACAS: With the value of Venezuela’s largest banknotes reduced to a few US cents by triple-digit inflation and the currency’s collapse on the black market, the country’s central bank said it would begin circulating higher-denomination notes this month.
New denominations including bills of 500, 1,000, 2,000, 5,000, 10,000 and 20,000 bolivars will start appearing at banks from Dec 15, according to a statement from the central bank, adding that coins of 10, 50, and 100 bolivars would also be released.
The reluctance of authorities to issue bills larger than 100 bolivars over the past several years as the currency declined in value had forced Venezuelans to ditch wallets in favour of bags of cash for everyday transactions.
Some shopkeepers have started to weigh wads of notes instead of counting them to save time.
Venezuela’s government, meanwhile, is planning to announce new currency measures after the bolivar lost almost twothirds of its value in black-market trading last month.
“There’s an action being planned that is going to have a very important impact,” Foreign Trade and Investment Minister Jesus Faria said in an interview on the Televen television network, without proving additional details.
“In the middle of this turbulence, there have to be continuous revisions, and that’s what we’re adopting, adjusting to the new challenges and conditions. The changes will be adopted on Tuesday, he said.
“Venezuela’s economy should start to stabilise next year and grow 1.5-2%,’’ Faria said, adding that the government “is working on policies to stabilise prices, inflation and speculation.’’
“The recent decision by the Organization of the Petroleum Exporting Countries to cut production should provide Venezuela with additional revenue of $8 billion or $9 billion next year and help improve the availability of products,’’ he said.
President Nicolas Maduro, in a Saturday address, said he was studying measures to combat an “attack against the currency.”
State media reported that some stores in downtown Caracas had been ordered to reduce prices.
“In this country, no one can set prices based on DolarToday. I’m not going to permit it,” Maduro said, referring to the website that tracks the black-market exchange rate.
“Looking for resources, you don’t know all that we’re doing. In December, I’m going to take a trip, up to two trips, to finalize the resources the country needs for 2017 and 2018.”