The Central Bank of Venezuela has announced that it will start issuing three new banknotes – 200,000, 500,000 and 1 million bolivars, AFP reported.
They will be gradually put into circulation on Monday to “meet the needs of the national economy”, adds BTA.
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The announcement was made amid hyperinflation in Venezuela, which has been in a severe crisis for years. Last year, the national currency of the South American country depreciated by nearly 3,000 percent.
Despite the many numbers, the three new banknotes combined do not make a single dollar. The US currency is now exchanged for 1.88 million bolivars, AFP notes.
“The problem with a cycle of hyperinflation is that the rate at which the central bank is updating its monetary system is never high enough,” said economist Astrubal Oliveros.
New banknotes were last issued in Venezuela in June 2019.
In the country, the bolivar is practically replaced by the dollar, which is used by the population. In shops, prices and payments are in dollars, and bolivar banknotes are mainly used to buy public transport tickets.
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