Central Bank of Venezuela issue banknotes of 500 and 5000 Bolivar due to shortage of cash and galloping inflation in the country. The new banknotes will soon be put into circulation, said the President of the country Nicolas Maduro. Currently the largest banknote in the country have a nominal value of 100 Bolivar, with which can be bough a candy.
For a week the Venezuelans are experiencing an acute shortage of cash, resulting in long queues at banks and ATMs. The collapse of the national currency, which during the last three months dropped by 75% against the US dollar, and inflation is already uncontrollable. It is expected that this year it will reach 475%, but in 2017 to explode reaching 1,660 percent, predicts the IMF.
Venezuela is experiencing one of the worst economic crises in its history. It was ruined by the decline in oil prices, the source of 96% of its foreign revenue.
The president said that the shortage of cash is deliberately provoked by the operation that fascist right wing led by (Colombian city) Cucuta, alliances with Colombian mafias in order to leave the country without money.
According to the President on the border between the two countries there are whole stores with Venezuelan notes, so he ordered to be confiscated by the armed forces. On Friday, Maduro said that Venezuela is under attack from its system of electronic payments in order to generate chaos in the country and violence break out in the streets.
Yesterday a lot of shops in Caracas were really overcrowded because of a failure in the payment system. The company Credikard, which according to Maduro manages half of the transactions, explained that inconvenience happened due to damage of the software.
According to the experts, the shortages of cash happened because the government failed to keep pace for issuing banknotes, because of higher inflation from last year, which reached 180.9%. To buy something that cost 100 Bolivar in 2008, now have to pay 10,000 Bolivar.
The President Maduro accused the right opposition that seeks to coup and makes maneuvers to break the ongoing dialogue between the authorities and opposition. The government and opposition forces, which have already majority in parliament, started negotiations in end of Ectober, aiming to end the worst political and economic crisis in the country. They were organized through the Vatican and the Union of South American States (UNASUR).
Tuesday is expected a new round of negotiations, but both sides from a few days to make mutual accusations of non-compliance with commitments and threaten to interrupt the dialogue.
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