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Friday, December 23, 2016

Venezuelans Still Waiting for New Bills after Cash Ban Chaos

As of December 22, banks had confirmed that they had not received any of the cash.

Venezuela continues to wait for new physical money to arrive in the country to combat hyperinflation.

Despite the fact that the first plane with supposed VEF $500 (US $0.18) bills arrived more than four days ago, citizens have not yet seen any of that money.

Vice President of the Central Bank of Venezuela Jose Khan said he received 11.5 million bills of VEF $500 on Tuesday, December 20. As of the morning of December 22, banks had reportedly confirmed to local media that they had not received any of the cash.

The bills that should have come into circulation last Thursday, December 15, are still absent from circulation, and some experts said they wouldn’t be enough even if they were.

The bills “would only reach to meet the demand of a single large bank” so it is possible that the extension will be made through January 2.

The absence of new physical money that’s supposed to be “more adapted” to hyperinflation in Venezuela has caused riots in nine cities and resulted in 424 detainees, according to the Public Prosecutor’s Office.

Faced with the country’s economic uncertainty, the opposing party of the National Assembly made proposals to fight the cash crisis, insisting on the need to extend the validity of the Bolivar.

“Let the indefinite circulation of 100 banknotes be allowed and the 50, 20, 10, 5 and 2 papers live with the new banknotes that will gradually stop the shortage of cash,” Economist and Opposition Deputy José Guerra said.

Republished from Panam Post.