Why is Venezuela bolivar on dollar zero

Bolívar: Venezuela removes three zeros from the national currency

In the fight against hyperinflation, the Venezuelan government is removing three zeros from the local currency. The country is in one of the worst economic crises in its history.

At a cabinet meeting on Thursday, President Nicolás Maduro announced the introduction of new coins and banknotes that would remove three zeros. The 100,000 bolívar bill, for which Venezuelans could only buy a coffee last time, will be replaced by a 100 bolívar bill from June 4th.

Another devaluation

In future, the largest banknote will be the 500 bolívar note. According to the official exchange rate, that is 11.30 dollars (9.16 euros), but only 2.10 dollars on the black market.

The Bolívar was devalued as early as 2008. Back then, too, they simply deleted three zeros and renamed the currency "Bolívar Fuerte" (strong bolívar). Since then, the Venezuelan currency has been devalued almost regularly every one to two years.

Worst economic crisis in history

As a result of falling oil prices and mismanagement, Venezuela is in one of the worst economic crises in its history, which is accompanied by drastic price increases. According to estimates by the International Monetary Fund (IMF), inflation that has gotten out of control could rise to as much as 13,000 percent this year. Due to supply bottlenecks, there have been several serious unrest, looting and mass protests in Venezuela.