Venezuelans rush to shop, fill up tanks before monetary overhaul

Hyperinflation has wreaked havoc, with piles of cash required to buy even a bar of soap

Jittery Venezuelans on Friday rushed to shops and lined up at gas stations, after concerns that a monetary overhaul to lop off five zeros from prices in response to hyperinflation could wreak financial havoc and make basic purchasing impossible.

Shoppers sought to ensure their homes were fully stocked with essentials such as food and dry goods and their tanks full, before the measure decreed by President Nicolas Maduro takes effect on Monday.

Inflation hit 82,700 per cent in July, according to the opposition-run congress, as the country’s socialist economic model continued to unravel, meaning purchases of basic items such as a bar of soap or a kilo of tomatoes require piles of cash that is often difficult to obtain.

“I came to buy vegetables, but I’m leaving because I’m not going to wait in this line,” said Alicia Ramirez, 38, a business administrator, leaving a supermarket in the city of Maracaibo. “People are going crazy.” The change appears unlikely to generate the chaos of December 2016, when Maduro removed the largest note in circulation without providing a replacement for it. That led to protests, lootings and hundreds of arrests as the country was effectively left without legal tender.

Drivers also rushed to fill up on Venezuela’s heavily-subsidised fuel, the world’s cheapest at around 2,896 gallons per US penny. Some drivers were worried about paying for fuel come Monday as there will be no new legal tender small enough to pay for a full tank.

Maduro also said this month that fuel prices should be increased, but has not provided a time frame for the hike. He said the new monetary measure would bring economic stability.