Tuesday, September 21, 2021

Venezuela to slash 5 zeroes from currency, postpones redenomination

Caracas, Jul 25 (EFE).- The President of Venezuela on Wednesday postponed the redenomination of the country’s currency from Aug. 4 to Aug. 20 and will cut five zeroes from the currency, rather than the three he had initially ordered.
Venezuela is going through a period of hyperinflation.

“I announce that the economic, currency redenomination (…) will start definitively on Aug. 20,” President Nicolas Maduro said during a speech broadcast on radio and television.

Maduro said that the new monetary system is “going to anchor (the bolivar) to the petro,” the Venezuelan oil-backed cryptocurrency launched earlier by the government.

He added without giving further details that officials from the Ministry for Popular Economy will explain later this week the scope of the measures.

Despite the opposition’s claim that the new banknotes have not yet arrived in the country, Maduro said that the government already has them and that they will enter circulation on Aug. 20.

The measures are part of the second redenomination that the country has implemented in 10 years.