To deal with the world’s worst inflation, Venezuelan Government announced demonetisation of Bolivar Fuerte 100 banknotes.
The demonetisation will be effective in next 72 hours.
President Nicolas Maduro on 11 December 2016 said that the
Bolivar 100 banknotes, worth only two US cents on the black money, will be withdrawn from the market on 14 December 2016.
He also gave 10-days time to Venezuelans to exchange the notes at the central bank of the country.
In addition to this demonetisation of the country’s biggest banknotes, Venezuelan President also ordered the closure of the border with Colombia for 72 hours.
This closure would help him in cracking down on currency smuggling by what he has called mafias trying to destabilise the socialist-run economy.
Maduro warned that people would not be allowed to bring back bolivar 100 notes from outside Venezuela to convert them in new bank notes.
Bolivar Notes- Venezuelan inflation rate is 500% presently.
- Led to shortages in food and medicine in a 30m population.
- More than 6 billion Bolivar 100 notes are in circulation currently.
- Government will be introducing six larger notes and three new coins from 15th Dec.
- The largest will be Bolivar 2000.
- It will be less than USD 5 in the market.
