Mises Wire

A
A
Home | Blog | Venezuela cuts zeroes from currency in hope of stalling inflation

Venezuela cuts zeroes from currency in hope of stalling inflation

January 15, 2008
GATA links to this story:
    -- Venezuela launched a new currency with the new year, lopping off three zeros from denominations in a bid to simplify finances and boost confidence in a money that has been losing value due to high inflation. President Hugo Chavez's government says the new currency -- dubbed the "strong bolivar" -- will make daily transactions easier and cure some accounting headaches. Officials also say it is part of a broader effort to contain rising prices and strengthen the economy. "We're ending a historical cycle of ... instability in prices," Finance Minister Rodrigo Cabezas said Monday, adding that the change aims to "recover a bolivar that has significant buying capacity."
....as if that's going to help.

Follow Mises Institute

Add Comment