When people start weighing their money for purchases instead of actually counting the “money” (which has been the case in Venezuela) one knows one’s economy isn’t in good shape.
Zapping five zeros off Venezuela’s almost worthless currency is nothing but a half-hearted measure and won’t solve the country’s chronic hyperinflation, analysts have told AFP.
President Nicolas Maduro initially announced in March that he would strike three zeros off the bolivar bank notes, before upping that to five.
Having predicted earlier this year that Venezuela’s inflation would hit 14,000 percent in 2018, the International Monetary Fund adjusted that projection earlier this week to a mind-boggling one million percent.
As the country grapples with a financial and humanitarian crisis, shortages of food and medicines, and failing public services such as water, electricity and transport, the question is how will this drastic move help drag Venezuela into recovery?