Venezuela: Redenomination of the bolívar postponed /update 1

Event

In March, President Nicolás Maduro had announced that the bolívar would be redenominated, i.e. three zeros would be removed from every denomination of the country's currency, amid rampant inflation. The change was initially scheduled to take effect on June 4. However, Maduro announced on May 29 that the redenomination would be postponed by at least two months.

Context

Venezuela has for years suffered from hyperinflation, along with other economic and financial crises. According to analysts, the current monthly rate of inflation has reached 100 percent, the highest in the world.

Once the change does take effect, individuals will not be required to exchange old bills for newer versions; however, all new bills will be printed using the new denomination.

Advice

Individuals in Venezuela are advised to keep abreast of the situation.