Maduro continues «drown» Venezuela: economic reform only aggravated the situation in the country.
🇻🇪 Can Venezuela recover from its financial crisis? | Inside Story
Just one day after the historic devaluation in Venezuela, which «chopped off» 5 zeros from the currency at once, the country has become a real economic chaos. «Partner» new bolivar — cryptocurrency el petro also failed to stabilize the situation.
Venezuela’s currency crisis explained
Since its inception, the coin has been banned by the US. All Maduro’s attempts to bring her out are ultimately failures: no one wants to use «candy wrappers» instead of proven financial instruments. The criticality of the level of trust was proved by what happened between Venezuela and India: the countries agreed on the terms of oil exports, Maduro used a 30% discount, provided that the purchase was made in el petro, to which the Indian authorities gave a negative response..
Today, Venezuelans can cash out even the funds they use; the maximum amount of money withdrawn from ATMs is limited to 15 dollars. Local residents are already accustomed to conducting financial relations without cash: some admit..
According to Venezuela, its policy is not used to increase prices, but in fact, absolutely everything in Venezuela is becoming more expensive at an incredible rate. There is no way to spend new money — they are not accepted anywhere. And their price literally melts before our eyes.
Without making significant changes in financial policy, only cutting off a few zeros from the previous currency, Maduro aggravated the situation, which is demonstrated by prices. Meanwhile, most economists predict that the president’s program will only exacerbate inflation, which the International Fund says will surpass 1,000,000% by the end of the year. Inflation is currently just under 110,000%.
Earlier, we wrote that the Venezuelan authorities will create a Central Bank to control El Petro and other cryptocurrencies..
text: Evgeniya Likhodey