Inflation-Hit Venezuela Follows Modi’s Footstep Banning 100-Bolivar Notes
Indian Prime Minister Narendra Modi took the bold step to fight against unaccounted money and corruption in the country by pulling from circulation two higher-value currency notes with immediate effect. The world leaders closely monitored the move to know the outcome and now it seems Venezuela President Nicolas Maduro is convinced that act has benefited Indians.
Venezuela announced today to be pulling from circulation its higher-value notes this week ahead of introducing new currency notes.
The country is undergoing lately an economic crisis and is facing the highest inflation in the world.
The move came as a surprise to people and is believed to worsen a cash crunch in the oil-producing nation. The 100-bolivar bill will be completely banned Wednesday onwards and just ten days will be given to the people to exchange the notes at the central bank.
Maduro said the move was needed to combat contraband of the bills at the volatile Colombia-Venezuela border. Critics have slammed the decision of the government.
According to Central bank data over 6 billion 100-bolivar bills are currently in circulation and this account 48 percent of all bills and coins.
Authorities said the government will release six new notes and three new coins from Thursday and the largest bill will be worth 20,000 bolivars.
Last month the bolivar currency dropped 55 percent against US dollar on the black market.
Maduro had earlier said organized crime networks operational on its border with Colombia purchase the country’s notes to buy subsidized Venezuelan goods and thereafter sell those in Colombia at good profit.