Venezuela inflation reaches 1,660% in 2017

Venezuela inflation

Venezuela inflationThe currency of Venezuela, which is pressured by political and economic crisis continues to fall. Only in November bolivar has lost 55% of its value. On November 1, one dollar was exchanged for 1,567 Bolivar and just a few weeks later – on 28 November, the greenback was worth 3,480 Bolivar.

Another proof of the deepening crisis in the country is the record surge in food prices and medicines. The inflation is expected to increase by 1,660% next year, according to International Monetary Fund (IMF). To compensate the collapse of the currency in Venezuela, the government was forced to inject fresh money into circulation, because there was not enough and people could not pay for more expensive goods.

In the summer the number of Bolivars in circulation was increased by 100% per month. However, the rate of inflation is accelerating, as of mid-November, the number of banknotes in circulation has increased by almost 130% compared with an year earlier, statistics show the central bank.

According to the bankers and analysts, the currency has absolutely no value, suffering free fall and hyper-inflation. The Venezuela’s currency now worth so little, that many of shopkeepers weigh vast piles of notes instead of counting them.

The standard-size wallets have become useless, as instead many people stuff huge volumes of cash into handbags, money belts, or backpacks, in scenes analysts have said are suggestive of “runaway” inflation.

But with the value of the bolivar falling so dramatically, Venezuelans are desperately trying to exchange their bolivars for dollars, which is seen as a more a more valuable and stable currency. That’s led to a scarcity of dollars. That’s boosted the dollar’s value versus the bolivar even more.

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