2017-01-18 Wed

To tackle inflation in Venezuela which is expected to reach 1,600% this year, officials have released larger denomination banknotes ranging from 500 to 20,000-bolivars for circulation.

The 100-bolivar note was the country's largest denomination note before the release. 100 bolivar is only worth three US cents on the black market. The new 20,000-bolivar note is only worth less than $6 (£5) on the black market.

The higher denomination notes have been introduced so that the general public does not have to carry large amounts of cash to pay for basic items. Some people are not really happy with the decision as they think that it would lead to more inflation. It was officially announced in December that the 100-bolivar note in being scrapped to prevent smuggling by gangs which hoard Venezuelan currency abroad.

Only 72 hours were given to the public to deposit or change the 100-bolivar notes. This led to protests, attacks and looting. The deadline has been extended many times and finally has been set to 20th February.