Houston Chronicle

Struggling Venezuela displays new bills in a country with world’s highest inflation

- By Hannah Dreier

CARACAS, Venezuela — Venezuela has unveiled six new bills set to go into circulatio­n next week.

Central Bank President Nelson Merentes said Tuesday the new higher-denominati­on bills would make commercial transactio­ns easier in the country with the world’s highest inflation.

The six new bills ranging from 500 to 20,000 bolivars will begin circulatin­g on Dec. 15.

Triple-digit inflation and a currency meltdown have left the country’s largest note worth just around 2 U.S. cents on the black market. Currently the largest-denominate­d bill is 100 bolivars, not even enough to buy a piece of hard candy at a street kiosk.

Some had speculated that the new bills might feature late socialist President Hugo Chavez or other nods to left-wing causes. But they instead portray the same historical figures, such as independen­ce hero Simon Bolivar, and national heritage as the country’s existing bills.

The new bills come as Venezuela borders on economic collapse. Inflation is soaring and expected to surpass four digits next year, according to the Internatio­nal Monetary Fund. Venezuela’s government hasn’t published price data since 2015.

The currency meltdown comes amid what should’ve been a rare bout of good economic news for Venezuela after the Organizati­on of the Petroleum Exporting Countries last week ceded to months of pressure from oildepende­nt nations and decided to cut production levels for the first time since 2008. Crude prices climbed at first, though the rise has stalled this week.

Venezuela has maintained strict currency controls since 2003.

 ?? Fernando Llano / Associated Press ?? The front and back of the newly issued 20,000 Bolivar, which honors independen­ce hero Simon Bolivar, are shown Wednesday in Caracas.
Fernando Llano / Associated Press The front and back of the newly issued 20,000 Bolivar, which honors independen­ce hero Simon Bolivar, are shown Wednesday in Caracas.

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