Venezuela comes to standstill amid uncertainty over new currency
- 6 years ago
Venezuela came to a standstill on Tuesday amid uncertainty over President Nicolas Maduro's introduction of a new currency aimed at revitalizing the country's crumbling economy.
For more on this and other news around the world we turn to our Ro Aram…
Aram… how bad is it looking for Venezuela?
Well Mark… the country's economic turmoil seems to have gotten worse in recent days amid hyperinflation and confusion over the new currency.
The value of its sovereign bolivar has already lost value against other currencies since it went into circulation on Tuesday.
The new bolivar has been devalued by 96 percent, dropping five zeroes off the old currency.
That means a can of coke, for example, that used to cost 2.8 million bolivars now costs 28.
The streets of major cities, including the capital Caracus, remained quiet as the public, as well as many businesses, are unsure of what the new monetary system will involve.
Even the country's black market in dollars is temporarily frozen.
Venezuela's opposition also called for a national strike to protest President Maduro's economic recovery package, which he has hailed as a "revolutionary formula."
A bank holiday was declared Monday to help banks and businesses adapt to the new currency, but confusion still lingers.
"….People don't understand. They rush out when they see the prices because they don't understand the new money. We're confused also over the change. When we do the transfers, the change is erased and it doesn't end up with anyone."
Such moments in Venezuela can be extremely volatile, but there have been no reports of significant protests or violence yet.
However, millions of Venezuelans are fleeing to neighboring countries in fear of an economic collapse.
For more on this and other news around the world we turn to our Ro Aram…
Aram… how bad is it looking for Venezuela?
Well Mark… the country's economic turmoil seems to have gotten worse in recent days amid hyperinflation and confusion over the new currency.
The value of its sovereign bolivar has already lost value against other currencies since it went into circulation on Tuesday.
The new bolivar has been devalued by 96 percent, dropping five zeroes off the old currency.
That means a can of coke, for example, that used to cost 2.8 million bolivars now costs 28.
The streets of major cities, including the capital Caracus, remained quiet as the public, as well as many businesses, are unsure of what the new monetary system will involve.
Even the country's black market in dollars is temporarily frozen.
Venezuela's opposition also called for a national strike to protest President Maduro's economic recovery package, which he has hailed as a "revolutionary formula."
A bank holiday was declared Monday to help banks and businesses adapt to the new currency, but confusion still lingers.
"….People don't understand. They rush out when they see the prices because they don't understand the new money. We're confused also over the change. When we do the transfers, the change is erased and it doesn't end up with anyone."
Such moments in Venezuela can be extremely volatile, but there have been no reports of significant protests or violence yet.
However, millions of Venezuelans are fleeing to neighboring countries in fear of an economic collapse.