New banknotes do not mean higher inflation! The inclusion of the new 200 and 500 bs bills is not necessarily related to an increase in inflation, according to the economist Jesus Palacios from Ecoanalítica.
Venezuela has been negatively affected by currency changes and rising inflation in the past, but is currently in a different situation regarding inflation.
“It is difficult to guarantee that inflation will remain like this in the future, but we have gone from inflation of 180,000% in 2019 to thinking of closing 2024 at 40%,” he added.
Palacios stressed that the inflation rate that the country had been accumulating has moderated in recent months.
He said that prices have stabilised, although this is difficult for Venezuelans to understand.
“The basket has shown a slowdown in the way prices are rising,” he added.
The economist recalled that the 200bs bill is equivalent to $6 at the official exchange rate and the 500bs bill is equivalent to $13.
He also pointed out that the monetary cone is not becoming very wide with this change, but it is a measure that seeks to rescue the use of cash in an economy that is using more bolivars again.
“The lack of cash complicates transactions in simple operations such as public transport and has led to a higher effective banking rate in the country than in other countries in the region,” he said.
He stressed that this is a transactional advantage that seeks to have greater consumption dynamics and facilitate issues such as change.
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2024-08-22 17:38:07
