VENEZUELA’s desperate leader pushed through new reforms yesterday as the nation’s socialist economy slipped deeper into meltdown.
President Nicolas Maduro knocked five noughts off the value of the Bolivar currency last week, and ordered a 3,000 per cent rise in the minimum wage.
President Nicolas Maduro pushed through new reforms as the nation’s socialist economy slipped deeper into meltdown[/caption]
But incredible hyperinflation has continued to rage out of control and is estimated to reach 1,000,000 per cent by the end of the year.
And the cash crisis has left Venezuelan shoppers having to take wheelbarrows of banknotes to stores to buy groceries and supplies.
A huge block of at least 2,600,000 Bolivars is now needed to buy a single toilet roll – making the banknotes far cheaper to use than the tissue.
A hefty stack of 14,600,000 Bolivars is needed to buy a 5lb supermarket chicken and a bar of soap is dwarfed by 3,500,000 Bolivars it costs to buy.
A toilet paper roll is pictured next to 2,600,000 bolivars, its price and the equivalent of 0.40 USD, at a mini-market in Caracas[/caption]
A kilogram of meat is pictured next to 9,500,000 bolivars, its price and the equivalent of 1.45 USD[/caption]
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Economists fear Maduro’s minimum wage increase could close thousands of stores across the country as companies are left unable to pay staff.
In the past five weeks, the price of a cup of coffee has doubled to 2,500,000 Bolivars – which under the new currency launched this week will cost 2.5 new Sovereign Bolivars.
Oil rich Venezuela – once hailed as a model Socialist state by Labour leader Jeremy Corbyn – began holding foreign exchange auctions yesterday in a bid to stabilise its currency.
Hard left firebrand Maduro – who recently survived an assassination attempt using bomb-laden drones – blames the US for his nation’s economic collapse.
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