Thursday, March 3, 2016

Here's One Country That Isn't Going to Ban Large Denomination Bank Notes

Venezuela's government will begin printing larger-denominated bank notes sometime this year, Central Bank President Nelson Merentes said, as runaway inflation has eroded the value of the nation's biggest bill to less than a U.S. dime on the black market, reports AP.

The largest bill currently in circulation — 100 bolivars — is worth 50 U.S. cents at the weaker of two official rates and less than 10 cents at the widely used black market rate. So worthless has the bolivar become that shoppers no longer count bills when given change, according to AP.

Central Bank President Nelson Merentes said that far from generating panic among Venezuelans the new bills will reduce price pressures "because you're going to have less bills circulating."

Oh yeah, quite the investment that Bolivar, right up there with betting that Rand Paul will win the 2016 US presidential election..


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