Venezuela to introduce one million bolivar bill as inflation persists

CARACAS: Venezuela’s central bank said on Friday that it would introduce a banknote worth 1 million bolivars beginning next week, as years of incessant hyperinflation continue to batter the value of the crisis-stricken South American country’s currency. The new banknote will be worth just 52 US cents at the current official exchange rate. Interannual inflation was running at 2,665 per cent as of January. The once-prosperous Opec nation’s economy has been in a tailspin for the past seven years, spurred by a collapse in oil prices that led to a drop in imports and a gaping fiscal deficit, prompting the central bank to print more bolivars. “These new bills will complement and optimize the current denominations, to meet the requirements of the national economy’’, the central bank said. The central bank said it will introduce 200,000- and 500,000-bolivar banknotes to circulate alongside the 10,000, 20,000 and 50,000-bolivar bills currently in circulation. — Reuters