The Bolivar falls after the currency reconversion in Venezuela
A year ago, President Nicolás Maduro assured that his economic plan would prevent the currency from decreasing its value, but today the problems have only grown. The president at that time referred to his plan as a "historic recovery" however, it only caused annoyance among its inhabitants and a major devaluation.
Days after changing the name from bolívar to sovereign, the currency lost 95.8% of its value, something that warned that the last year was one of the worst for the Maduro regime. To give a better context, at that time it was planned to fix the dollar at 60.27 bolivars, but the plan failed and a year later a dollar is worth 14483 bolivars.
During June 2019, the Central Bank of Venezuela in an attempt to stabilize the currency has proposed a bill of 50,000 bolivars, which is 100 times the value of the highest bill issued in 2018. However, this new bill is not even enough to buy a kilogram of meat on the Venezuelan streets.
The bolivar is a useless currency, a product of hyperinflation and devaluation itself. If the reconversions of 2018 and 2008 are ignored, one US dollar would actually be equivalent to more than a trillion bolivars, said José Guerra, a deputy in the National Assembly.
Generally, people who continue in Venezuela depend on the money earned by their relatives abroad and Maduro has allowed this foreign money to enter. If it changes its policy on this, a large part of the Venezuelan people will have to leave the country.
It would have been preferable to update the previous cone, then to introduce new banknotes of a lower quality, it would be understood that they should be disposable in a process of hyperinflation and proceed to correct the exchange problem: raise the price of gasoline, replace PDVSA's monetary financing by gasoline income, have a credible, reliable and verifiable budget. And to be able to get international loans to sustain the exchange rate, explained Ronald Balza in an interview with the newspaper El País.
The hope of a change is increasingly remote, however, the Venezuelan people believe that everything can change and removing Maduro from power is the first step.
