CARACAS (Pakistan Point News / Sputnik - 22nd August, 2018) The rate of the new national Currency of Venezuela, sovereign bolivar, which was introduced on Monday, is set at 60 bolivars per one US dollar, the country's central bank said on Tuesday.
On Monday, Venezuelan government announced introduction of a new currency, sovereign bolivar, to replace the old one devalued as a result of hyperinflation. According to Maduro, there are two currencies in Venezuela starting Monday - bolivar and oil-backed digital currency petro. At the same time, old money also remain in circulation until they are phased out. The new bolivar will be tied to petro, and the central bank will begin to publish the official rates an a daily basis. Maduro also announced a 60-fold increase of the minimum wage, which now amounts to 1,800 denominated bolivars, or half the cost of one petro.
The central bank noted that petro is quoted at $60 or 52.43 Euros. Thus, one petro is worth 3,600 sovereign bolivars.
Venezuela has been struggling with political and economic crisis amid a global slump in oil prices and US sanctions after Washington blocked its investors from buying Venezuelan debt and prohibited dealing in Venezuelan digital currencies.
At the same time, Venezuelan authorities announced the liberalization of the Dollar and the cancellation of the restrictions on its circulation that existed for many years. Venezuelan Minister of Communications and Information Jorge Rodriguez has already announced plans to open 300 exchange offices throughout the country where people can freely exchange petro and Dollars at rates close to market ones.
According to the forecasts of the International Monetary Fund (IMF), the inflation in Venezuela may reach 1 million percent in 2018.
