PEC petroleum currency mining
Venezuela launched a new currency on August 20, while the Venezuelan government announced a series of economic reform measures to deal with hyperinflation in an attempt to put Venezuela's economy back on track
from the 20th, the new currency "sovereign Bolivar" replaced the original currency "strong Bolivar" and began to circulate, with the exchange rate of 1:100000. The Venezuelan government issued banknotes with a minimum denomination of 2 sovereign bolivars and a maximum denomination of 500 sovereign bolivars, as well as coins with two denominations. New notes and old notes will coexist for some time
analysts believe that the issuance of the new currency will effectively alleviate the serious "cash shortage" in Venezuela, make the paper money have a certain purchasing power again, rece the burden of the banking system, and improve the overall circulation and transaction efficiency of the society
analysts believe that the strength of the currency reform, together with a package of economic, financial and social welfare reform measures, shows the determination of the CPC Central Committee government to promote economic transformation, and also responds to the people's desire to improve their lives to a certain extent. However, it remains to be seen whether it can help the CPC Central Committee extricate itself from its economic difficulties as soon as possible
Venezuela launched a new currency to deal with hyperinflation at the same time, the Venezuelan government announced a series of economic reform measures to deal with hyperinflation, trying to put Venezuela's economy back on trackfrom the 20th, the new currency "sovereign Bolivar" replaced the original currency "strong Bolivar" and began to circulate, with the exchange rate of 1:100000. The Venezuelan government issued banknotes with a minimum denomination of 2 sovereign bolivars and a maximum denomination of 500 sovereign bolivars, as well as coins with two denominations. New notes and old notes will coexist for some time
although banks were closed on the 20th, some citizens were able to withdraw new currencies with small denominations from ATMs
Analysts believe that stopping the indiscriminate issuance of currency and reforming finance will help to improve the credit of local currency, and the market-oriented exchange rate mechanism will also help to eliminate the distortions brought by the past al track exchange rate system. However, substantial increases in minimum wage and gasoline prices, tax increases, and market-oriented reform of the exchange rate may also push up inflation further A number of opposition parties have called on their supporters to organize continuous nationwide protests and strikes on the 21st to resist the reform measures, saying that these measures will lead to runaway inflation, business closures and unemployment According to OPEC data, Venezuela's oil proction fell to 1.5 million barrels a day in June, a new 30-year low. Over the past decade, Venezuela's nationalization of the oil instry has not only caused a lot of international disputes, worsened relations with the United States, but also continued to rece oil proction Delgaro, a researcher at Venezuela's Advanced Research Center for emerging economies, told Xinhua that the Venezuelan government should resume domestic oil and mining proction and export as soon as possible, effectively increase the country's foreign exchange income and attract foreign capital inflow, which is the key to economic and social stability Since the 20th local time, the Venezuelan government officially launched a new currency and announced a series of economic reform measures to deal with hyperinflation in order to get the economy back on trackanalysts believe that the strength of the currency reform, together with a package of economic, financial and social welfare reform measures, shows the determination of the CPC Central Committee government to promote economic transformation, and also responds to the people's desire to improve their lives to a certain extent. However, it remains to be seen whether it can help the CPC Central Committee extricate itself from its economic difficulties as soon as possible