If you think Indians are the only people facing a cash crunch, you are wrong. People in Venezuela were hit by a shocker when their president pulled out the highest denomination bill from circulation. Already in the midst of an economic crisis, how are Venezuelans grappling with the new scenario?
Move against mafias
On Sunday, President Nicolas Maduro ordered the 100 bolivar to be scrapped by Thursday. Billions of bolivars, in bills of 100, were stashed away by gangs in Colombia, Brazil, in Europe and Asia, AFP quoted him as saying
48 % of all bills and coins in Venezuela are 100 bolivar notes
Burden of currency
Critics have slammed the move and predict more chaos in the already bleak economy. Inflation is in the three-digit-range and with no official data, economists have guessed it could be between 200 per cent to 1,500 per cent. The 100 bolivar, is worth less than a dime
Since the currency is that weak, people carry wads of notes in gym bags to buy even a slice of cheese. Shopkeepers have even resorted to weighing currency notes to avoid counting, according to Bloomberg
A bleak Christmas gift
Although the government is scheduled to start releasing higher-denomination notes, the biggest being a 20,000 bolivar bill, people are not amused by the president’s move. People waiting in front of banks are now carrying bags of notes in a country with one of the highest rates of violent crime