On Friday, the official exchange rate of the Venezuelan bolivar rose from 4.18 million to just 4.18 million US dollars, after Venezuela cut six zeros from its inflation-hit currency to simplify transactions.
On Friday, the Venezuelan Central Bank announced that “everything expressed in the national currency will be divided by a million.”
The move is the third banknote reform in 13 years, with a staggering 14 zeros removed since 2008.
Coinciding with the announcement, the online platform of the General Bank of Venezuela, which has 14 million customers, was down by mid-afternoon, with those trying to conduct online transactions faced with a letter apologizing for the inconvenience.
It is noteworthy that Venezuela is struggling with an eighth year of recession and hyperinflation, which reached nearly 3,000 percent in 2020 and more than 9,500 percent in the previous year, according to central bank figures.
It is expected to reach about 1,600 in the current year, 2021, according to forecasts by Ecoanalitica, an economic consultancy.
In May, the government tripled the monthly minimum wage, but the new amount was not even enough to buy a kilogram of meat.
The country is witnessing one of the worst economic crises in its history against the backdrop of the significant decline in oil prices, which constitutes 96 percent of its revenues.