• Breaking News

    Monday, December 12, 2016

    Is it wise to change highest denomination of currency to coin? Venezuela about doing that

    Image result for Is it wise to change highest denomination of currency to coin? Venezuela about doing that
    In an effort to stop smuggling of high amount of money and to tackle food shortage Venezuelan government has announced it plans to replace the country's highest-denomination banknotes with coins.

    According to the government of Venezuela, the 100-bolivar notes will take 72 hours to effect the replacement to coin.

    Reacting to idea of the replacement, Nicolas Maduro, the president of Venezuela said the gangs operating in border areas will not have time to repatriate the notes as it will be help the economic grow, but oppositions believe it will not work and went on to post a message on social media through twitter.

    Henrique Capriles, the leader of the opposition group wrote: "When ineptitude governs! Who would possibly think of doing something like this in December amid all our problems?".

    Others argued it would be impossible to swap all the 100-bolivar notes in circulation in the time allotted.

    The 100-bolivar note has lost most of its value over the past few years and is now worth about 2 US cents (£0.015).

    Venezuela, which is facing a serious economic and political crisis, has one of the world's highest inflation rates.

    "I have given the orders to close all land, maritime and air possibilities so those bills taken out can't be returned and they're stuck with their fraud abroad," said Mr Maduro on television.

    Earlier this month, the central bank said that six new bills ranging from 500 to 20,000 bolivars would come into circulation on 15 December.

    The government last published figures for inflation in December 2015, putting it at 180%, but the International Monetary Fund (IMF) estimates that next year's prices will rise by more than 2,000%.

    Source: BBC-News

    No comments:

    Post a Comment

    Fashion

    Beauty

    Culture