CARACAS, March 6 (NNN-AGENCIES) — Venezuela said it will introduce new large-denomination bolivar notes as hyperinflation renders most bills worthless, forcing citizens to turn to the US dollar for everyday transactions.
The country’s central bank posted a statement on its website saying it would begin circulating the new 200,000, 500,000 and 1,000,000 bills to “fulfill the current economy’s requirements” without providing further details.
The 1,000,000 note – the largest in the nation’s history – is worth only US$0.53 cents.
About 66 per cent of transactions across the country are estimated to be made in foreign currency, according to Ecoanalitica.
While the dollar has gained ground, Venezuelans continue to rely on bolivar bills for public transportation and to purchase subsidised fuel.
President Nicolas Maduro has said he plans to move to a fully digital economy this year, following three years of hyperinflation that have prompted the nation’s mint to issue higher-denomination notes that are quickly rendered all but useless.
Inflation soared 3,000 per cent in the last 12 months.
It last issued new bills in 2019, after chopping five zeros off the previous bills in circulation in 2018. — NNN-AGENCIES
