Saturday, December 17, 2016

CRAZY: Venezuelans Protest Over Voided Money

This is pretty insane and one for the record books. In the middle of a hyper-inflation, the Venezuelan government has voided its large denomination currency.

The Wall Street Journal reports:
Desperate and cashless Venezuelans, angry that the government hasn’t exchanged their voided bank notes as officials had pledged, on Friday rose up in protest with some scattered looting of stores...

With only nine days to go before Christmas, Venezuelans grappling with a collapsing economy and soaring inflation are left without money after President Nicol├ís Maduro in a sudden move this week banned the 100-bolivar note, the country’s largest denomination. Only the Central Bank now accepts the remaining bills—and only until Tuesday...

[Maracaibo]the central bank office didn’t open Friday for the exchange officials had been promised. Troops turned away nearly 1,500 people who had lined up starting Thursday night to turn in their useless bills, prompting angry mobs to block traffic and riot. Dozens were arrested.

Mr. Maduro gave his countrymen only days to turn in the 100-bolivar notes, which are worth only a few U.S. cents. Until this week, it was the nation’s most widely used bank note....

New 500-bolivar bills that Mr. Maduro had said would circulate this week have yet to be distributed, causing panic, because more than a third of Venezuela’s 30 million people lack a bank account.

Those lucky enough to line up at the central bank headquarters in the capital, Caracas, were able to at least deposit their money. They were given IOUs and told they could pick up the new bills when they are ready.

1 comment:

  1. Venezuela is a prison without walls. I can't imagine anybody remaining in that country that could leave.