Venezuela: Redenomination of the bolívar postponed until August 20 /update 2

Event

On Wednesday, July 25, Venezuelan President Nicolás Maduro announced that the redenomination of the bolívar, planned for August 4, will be delayed for a second time until August 20. When the redenomination takes effect on August 20, five zeros will be removed from every denomination of the country's currency, as newly issued "sovereign bolívars" replace bolívars currently in circulation.

Context

The redenomination, originally intended to remove three zeros from each currency denomination, was announced scheduled for June 4, but was postponed for two months by President Maduro on May 29. Venezuela currently has the highest inflation rate in the world, projected by the IMF to reach 1,000,000 percent in 2018. The Venezuelan economy has been in a recession since 2014 and is expected to shrink 18 percent in 2018 amid the bolívar's hyperinflation.

Advice

Individuals in Venezuela are advised to keep abreast of the situation. In general, persons in Venezuela are advised to strictly avoid all protests and political events due to the high likelihood of violence and to remain up to date on current sociopolitical developments.