Click me
Transcribed

Venezuela hyperinflation

A12 Tuesday, March 12, 2019 South China Morning Post Taiwan Yugoslavia Armenia Nicaragua 16.4 days Germany Greece China Hungary Russia Venezuela Historical hyperinflation VeF495,000,000 4.95 metres 3.7 days 4.27 days 15.2 days 17 days 1.4 days 12.5 days Time required 13 days 15 hours 17 days 6th Time required for prices to double - one day Year 1922-1923 1941-1945 1943-1945 Aug 1945 1945-1946 1986-1991 Jan 1992 1992-1994 1993-1994 2016... The last increment January 14, 2019 5th A stack of bolivar fuerte notes would reach: 19.8 metres Venezuelan inflation BCV More than 495kg in banknotes! • VeF1,980,000,000 Banco Central de Venezuela It is not uncommon to raise minimum wages annually, but there have been 26 increases under President Nicolas The Central Bank of Venezuela is Maduro since 2013. The central bank recently devalued the bolivar as Venezuela's currency continues to plummet in charge of national monetary policy and issues the country's cash. It is independent of the executive. However, Maduro has taken progressive control of the institution through legislative By Marcelo Duhalde marcelo.duhalde@scmp.com decrees Bolivar fuerte (VeF) 4th E84251239 The bolivar fuerte was introduced in 2008 to replace the official currency at a ratio of 1,000 bolivar to one bolivar fuerte. The bolivar fuerte went into hyperinflation in November 2016. 156 mm SPECIMEN Actual size E84251239 Bolivar soberano (VeS) Following the uncontrollable devaluation of the bolivar in August 2018 the executive decided to introduce the bolivar soberano by removing five zeros from the bolivar fuerte. 3th ADEROS AL POR 1000, Pedro Camejo, better known as Negro Primero, or 'The First Black', was a Venezuelan soldier who left A25848505 the royal army to join the rebel army during the Venezuelan war of independence. SPECIMEN Without this new monetary policy Venezuelans would need to carry huge wads of cash A 2584 2nd The VeS10 note replaced the VeF100,000 VeF198,000,000 1.98metres It was not feasible for the central bank to continue issuing huge amounts of notes Rafael Urdaneta was a 1st Venezuelan general and hero of the Spanish American wars of independence scale reference Minimum wage by height The best way to understand the extreme increases in the minimum wage is by comparing stacks of 1,000 bolivar fuerte notes to their equivalent value in us$1 notes, highlighting four episodes in the past six years. Although the increase in the minimum wage is colossal, the actual value in dollars has dived since 2013 VeF325,544 uS$11 * us sanctions us$20 VeF3,224 US$147 VeF6,984 US$40.3 VeF90,812 5,196,000 50 0.3mm 1.47cm 0.7mm 4mm 9mm 2mm Piles of one Piles of 1,000 bolivar fuerte notes Actual size 3.25cm Imm G/F dollar notes February 2013 December 2014 November 2016 September 2017 2,555,500 25 1,307,646 797,510 7.97 Amount 10.3 104,358 200,021 250,531 325,544 456,507 in VeF* 3,224 3,634 3,879 4,150 Height 0.03 0.03 0.04 0.04 (cm) 4,447 5,648 6,984 8,097 9,221 9,896 16,398 24,852 33,636 65,056 90,812 2 2.5 3.25 4.5 0.04 0.05 0.07 0.08 0.09 0.1 0.16 0.25 0.33 0.65 0.91 Piles of 1,000 bolivar fuerte notes Ves 1,980 4,950 0.02 0.05 19,800 0.2 Maduro takes office The petro (cryptocurrency) is introduced 2013 2014 2015 2016 2017 2018 2019 Feb. May Sep. Nov. Jan. May Dec. Feb. May Jun. Nov. Mar. May Sep. Nov. Jan. May Jul. Sep. Nov. Jan. Mar. May Jun. Sep. Dec. Jan. March 8 August 24 March 19 May 21 November 1 January 28 Piles of one dollar notes 0.6 0.6 Height 1.47 Amount 147.6 127 in us$ 1.27 0.9 0.5 0.8 0.4 0.3 0.2 0.1 0.2 0.21 0.33 0.2 0.29 0.32 0.2 0.1 0.04 0.03 0.05 0.02 0.01 0.1 0.09 0.06 91.3 66.7 55.7 80 40.3 36.4 22.9 14.6 18.7 21.2 33 60.3 20 29 32.7 22.4 11 4.7 3.3 5.5 2 1.5 11.3 9.9 US$6 Blocks assets and suspends entry of certain people Prohibits negotiations on new debt and bond issues by the Venezuelan government and state oil currency that has been company PDVSA Prohibits all transactions by an American or person in the US in any digital Prohibits carrying out transactions with debt securities and shares issued by the Venezuelan Imposes sanctions on gold exports and other sectors of Venezuela's PDVSA assets frozen *Considered the minimum wage plus the food bonus issued by or on behalf of the government of Venezuela economy government and PDVSA What can the minimum wage buy in Venezuela? At least 4 million people live on the minimum wage. Most people need to work more than one job Minimum monthly wage plus food bonus* Ves19,800/HK$47 Average family monthly income Ves80,000/HK$190 Toilet paper (Four rolls) Ves10,410/HK$25 Oats (400g) Ves17,200/HK$41 Shampoo bottle (200ml) Ves18,473/HK$44 Facial cream (50ml) Ves35,500/HK$84 Bottle of wine (mid-range) Ves40,000/HK$91 Nappies (32 pieces) Ves53,100/HK$126 *As of January 2019 Sources: El Comercio de Lima; El Universal de Caracas; Official Gazette of the Bolivarian Republic of Venezuela; actualidad-24.com; dolartoday.com; the Hanke-Krus World Hyperinflation Table; US Department of the Treasury SCMP Graphics 69 mm República Bolivariana República Bolivariana de Venezuela 10 1000 DIEZ MIL BOLÍVAR BOLÍVARES 15 DE ENERO DE 2018 ALFORIADA DEHOS AL PORTADOR August 20, 2018 FRESIDENTE BCY PRIMER VICE PiRESInN PRIMER VICEPRESIDENTE BOY 12

Venezuela hyperinflation

shared by marcelod on Sep 26
50 views
0 shares
0 comments
It is not uncommon to raise minimum wages annually, but there have been 26 increases under President Nicolas Maduro since 2013. The central bank recently devalued the bolívar as Venezuela’s currenc...

Publisher

SCMP

Category

Economy
Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy

For wordpress.com:

Click the code to copy
Customize size