Venezuela prints bills, closes borders — Bitcoin to the rescue

posted by
December 14, 2016
by Jeremie Guelat  
Posted in Commentary

"As all countries suffering from hyperinflation have done in the past (with absolutely no success -- think Weimar Republic, Zimbabwe, Argentina, etc.), the Venezuelan government just announced the removal of the largest currency denomination (100 VEF, only worth 2 U.S. cents). They'll also print larger ones (up to 20,000 VEF, due on Thursday). With hyperinflation expected to reach a staggering 1600% next year according to the IMF, one can easily foresee a situation where the government will repeat this process until the currency is dead and citizens' wealth gone with it. ... President Maduro also decided to close the borders with Colombia on Monday, preventing any additional capital flight out of the country. But this move will also prevent the population to access foods and other supplies that were being imported from Colombia, as basic supplies shortages are now too common in Venezuela." (12/14/16)  

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