Venezuela’s central bank issued 10 lakh bolivar banknotes
Venezuela, a South American country, has issued a new 1 million bolivar banknote to cope with the economic crisis and severe inflation. Before that, no country in the world had printed such a large banknote. According to Venezuela’s current inflation, the price of one million bolivars will be half the US dollar (around 36 rupees). In this case, half a liter of gasoline will not come to India. People, who once saw immense prosperity thanks to oil, are now starving. The value of the devaluation in rupees is that people carry notes in sacks and bags and take them home in polyethylene hanging in their hands.
2 lakh and 5 lakh notes will be published next week
Venezuela’s central bank has said that given the country’s economy, such an important currency note must be issued. Two bolivar lakh and five million bolivar banknotes will also be issued next week. Currently, 10,000, 20,000 and 50,000 bolivar banknotes are in circulation in Venezuela. The price of 1 rupee in Venezuela is 25584.66 bolivar from India.
Speculation over printing notes had been going on since last year
Last year, a Bloomberg report indicated that the Venezuelan government would soon be printing a 1 million bolivar (rupee there) banknote. For this, 71 tonnes of security paper were imported from an Italian company. The company is owned by the Italian company Bain Capital, which exports security paper to many countries around the world. The custom report reveals that the security paper has been requested.
Half a kilo of rice will come in a 10 lakh note
In Venezuela, the 1 million bolivar banknotes have now become the largest denomination banknotes. However, its price is still half the US dollar. Only two kilos of potatoes or half a kilo of rice will be able to buy here for this rupee. The government plans to print large denominations to relieve the population. By which ordinary people will avoid carrying large sums of money.
Economy in recession for the eighth consecutive year
Venezuela’s economy is in recession for the seventh year in a row due to the Corona virus lockdown and the depletion of the oil currency. There are fears that the economy of this country will shrink by 20% by the end of the year. The economy of this country is deteriorating due to corruption. Right now, corruption is so high in Venezuela that you may also have to pay bribes to walk.
Venezuela’s economy is steadily weakening
The condition of Venezuela’s economy has now become that the country has to buy goods by selling gold. In Venezuela, millions of people go to bed hungry. Because they don’t have to eat. According to a report, there are around 700,000 people in Venezuela who don’t have the money to buy food twice. The United Nations Food Programs Agency said in February that one in three Venezuelans did not have food. In the present time, due to corona, the situation has worsened.
Venezuelans leaving the country
According to the report, after 2013, around 3 million people left their countries and took refuge in neighboring Brazil, Cambodia, Ecuador and Peru. The situation is so bad that these countries have deployed their troops along the Venezuelan border. At present, this is the largest displacement of any country in the world.
Who is the real president of Venezuela? The world does not know
To this day, it is not known who the president of Venezuela is. The results of the presidential election arrived here in early 2019, in which leader Nicolas Maduro won the election, but he was accused of manipulating the votes. Maduro had Khuan Goido, who became the leader of the opposition in parliament this month, in the election. Until then, no one knew him in World Politics, but today he calls himself president. Maduro refused to resign after the election results, while Goido claims he has the constitutional right to become interim president until the next election.
Why did Venezuela have such a situation
Venezuela was once the richest country in Latin America. Reason, it has more oil than Saudi Arabia. There are also gold and diamond mines, but the economy is based entirely on oil. 95% of government revenue continues to come from oil. Hugo Chavez, who became president in 1998, made many changes to the country’s system to stay in the presidency for a long time. Apart from government and political changes, Chavez ruled industries, cried out against the private sector, wherever there was less money, he took on a lot of debt and gradually the country drowned in debt. . Chavez became the Messiah by spending money from the oil companies and spending on the needy, but the Venezuelan economy turned termite.
Such a bad situation
In 2013, Chavez chose Maduro as his successor, who inherited a large debt. Politics was at its peak, with oil prices dropping as well. When oil got cheaper incomes fell and poverty increased, so Maduro lowered the price of currency. Nothing was done with this step, but inflation has definitely started to rise. The audience pocket was getting lighter than before, now she was also starting to kick him on the stomach. From there, the economic and political division of the country began to occur.
Major problems of Venezuela
The currency price event, power cuts and basic necessities are going to get expensive. Venezuela uses a lot of hydroelectricity. Electricity production dropped here due to the drought in 2015. The electricity crisis had increased so much that in April 2016 the government decided that from now on government offices would only operate on electricity. Mondays and Tuesdays. Inflation in Venezuela is over 2,600%.