Venezuelan currency worth less than toilet paper

AFP:
Venezuela's money, the bolivar, is sinking faster and faster under an intensifying political and economic crisis that has left citizens destitute and increasingly desperate.

Its depreciation accelerated this week, after a disputed vote electing an all-powerful "Constituent Assembly" filled with allies of President Nicolas Maduro, which the opposition and dozens of countries have called illegitimate.

On Thursday alone, the bolivar slumped nearly 15 percent on the black market, to be worth 17,000 to one US dollar.

In a year, the currency has lost 94 percent.

The decline has been dizzying -- yet largely ignored by the government, which uses an official rate fixed weekly that is currently 2,870 to the dollar.

Ordinary Venezuelans, however, refer only to the black market rate they have access to, which they call the "dolar negro," or "black dollar."

"Every time the black dollar goes up, you're poorer," resignedly said Juan Zabala, an executive in a reinsurance business in Caracas.

His salary is 800,000 bolivares per month. On Thursday, that was worth $47 at the parallel rate. A year ago, it was $200.

The inexorable dive of the money was one of the most-discussed signs of the "uncertainty" created by the appointment of the Constituent Assembly, which starts work Friday.

As a result, those Venezuelans who are able to are hoarding dollars.
...

At one point the currency was worth less than the paper it was printed on.  This is what you get from socialism.  If children around the world are not being taught this they will live to regret their ignorance.

Comments

  1. Only a government can take a valuable commodity like paper and make it worthless by printing money on it.
    --- Mark Twain

    ReplyDelete

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