In February, the country’s retail inflation reached the highest in three months at 5.03 percent. In such a situation, the question may be arising in your mind that what can happen due to rising inflation? It is the effect of inflation that the country of Latin America, Venezuela, has issued 10 Lakh Bolivares note.
In terms of value, it is equal to just 52 US cents ($ 0.52 or 37 rupees). According to the central bank there, the inflation rate has reached 2665 percent. According to a Reuters report on 6 March, Venezuela’s central bank said it would print 2 lakh and 5 lakh bolivar notes in the coming days. At present there are 10 thousand, 20 thousand and 50 thousand bolivar notes already in circulation. Talking about the value, half a kilo of rice can be bought in 1 million bolivars.
Central bank reserves at 50-year low
Venezuela has a huge stock of oil and it was also rich due to oil production. But with the fall in oil prices in the last seven years, there economy collapsed. The country’s central bank reserves are at their lowest level in 50 years. The fiscal deficit has increased so much that the Central Bank has to print currency notes on a large scale. Due to this, the size of notes is increasing, but the value is decreasing.
Economy will fall by 20 percent
Venezuela’s economy is in recession for the seventh consecutive year due to the Corona virus lockdown and the depletion of oil money. It is feared that the economy of this country will shrink by 20 percent by the end of this year. 95% of the government’s income continued to be from oil.
America has kept the Sanction
The President of Venezuela is named Nicolas Maduro. The government there is now moving towards the dollarization process. The Maduro government has blamed the US government for this condition of the economy. America has put a Sanction on this country.
US Secretary of state antony blinken refers Taiwan as country amid tensions with China