Financial catastrophe in Venezuela: the consequences of devaluation

Maduro continues to «turn» Venezuela: the economic reform only aggravated the state of affairs in the country.

After just one day after the historical devaluation in Venezuela, which «cut off» from the currency at once 5 than 5 noise, the country plunged into the most real economic chaos. The «partner» of the new Bolivar — Cryptovaluta El Petro also could not stabilize the situation.

Since the initiation of the coin, the US Bank received. All attempts to Maduro withdraw her to light ended in failures: no one wants to use «candy» instead of proven financial instruments. The criticality of the level of confidence was proven by the incident that occurred between Venezuela and India: countries agreed on the export conditions of oil, Maduro offered a discount of 30%, provided that the purchase responded in El Petro, to which the power of India gave a negative answer.

Today, residents of Venezuela cannot even cash out tools, the maximum amount of issuing money in ATMs is limited to $ 15. Local residents have already accustomed to conduct financial relations without cash: so, some are recognized that they have not seen paper money for several months.

According to Maduro, his policy will not become the basis for price increases, however, in fact, everything in Venezuela is becoming an incredible pace. Wasting new money is not possible — they are not accepted by anywhere. And their price literally melts in front of his eyes.
Not making significant changes in financial policy, only banging several zeros from the previous currency, Maduro aggravated the situation that prices demonstrate. Meanwhile, most economists predict that the president’s program only aggravates inflation, which, according to the International Monetary Fund, will exceed 1,000,000% by the end of the year. Currently, inflation is slightly less than 110,000%.

Earlier, we wrote that to control El Petro and other cryptocurrency