2018-03-26 Mon

Amidst economic crisis, Venezuela launches new currencies in an attempt to salvage its rapid inflation. Recently a rural community and a Caracas slum have created their own currencies as local-based alternatives for their country’s economic crunch.

These notes were inaugurated on Monday 19th March 2018 in the rural city of Elorza in its yearly festivities for the patron Saint Joseph. The mayor of Elorza, Solfredis Solorzano, a member of the governing PSUV party, introduced the currency measures to ensure that the country's hyperinflation and the shortage of Bolivares, Venezuela's official currency, would not create hindrances in carrying out the annual celebrations. The city dwellers and others will be permitted to use this new currency, "the Elorza", to buy goods, food, drinks, to attend traditional music concerts and bet on cockfights, and other festive activities.

With an economy largely dependent on oil exports, Venezuela has been hit particularly hard by the declining global oil prices. In a country where roughly a third of the population lacks a bank account, cash transactions are a critical part of the economy — especially for the poor. With the ever rising prices, the middle class and salaried people are finding it hard to make the ends meet.

These new alternative currencies, in spite of its possible fostering the way for other communities to launch their own money without any kind of official backing and other illicit activities, will hopefully get the economic situation under control.

Further, the Venezuelan President Nicolas Maduro on 23rd March 2018 has announced that he would knock three zeros off the Bolivar currency. Economists say that simply chopping zeros off the Bolivar notes is unlikely to control the hyperinflation.

Thousands of people have taken to the street to protest against the ever-rising inflation.

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