rooster59 Posted August 18, 2018 Share Posted August 18, 2018 Venezuelans rush to shop, fill tanks before monetary overhaul By Shaylim Castro and Isaac Urrutia Motorists line up for fuel at a gas station of the Venezuelan state-owned oil company PDVSA in Caracas, Venezuela August 17, 2018. REUTERS/Marco Bello CARACAS/MARACAIBO (Reuters) - Jittery Venezuelans on Friday rushed to shops and lined up at gas stations on concerns that a monetary overhaul to lop off five zeros from prices in response to hyperinflation could wreak financial havoc and make basic commerce impossible. Shoppers sought to ensure their homes were fully stocked with essentials such as food and dry goods and their tanks full before the measure decreed by President Nicolas Maduro takes effect on Monday. Inflation hit 82,700 percent in July, according to the opposition-run congress, as the country's socialist economic model continued to unravel, meaning purchases of basic items such as a bar of soap or a kilo of tomatoes require piles of cash that is often difficult to obtain. "I came to buy vegetables, but I'm leaving because I'm not going to wait in this line," said Alicia Ramirez, 38, a business administrator, leaving a supermarket in the western city of Maracaibo. "People are going crazy." The change appears unlikely to generate the chaos of December 2016 when Maduro removed the largest note in circulation without providing a replacement for it. That led to protests, lootings and hundreds of arrests as the country was effectively left without legal tender. Drivers also rushed to fill up on Venezuela's heavily-subsidized gas, the world's cheapest at around 2,896 gallons per U.S. penny. Some drivers were worried about paying for gas come Monday as there will be no new legal tender small enough to pay for a full tank. Maduro also said this month that gas price should be increased, but has not provided a timeframe for the price hike. A half-dozen sources at service stations said they had not been briefed about any changes and were not expecting an imminent rise in prices. "It's better to be safe than to try to go out during the weekend and not to find open gas stations... I think people are more sad than angry about this," said teacher Ana Perez, 50, as she lined up in a station in the once industry-filled city of Valencia. Maduro, who has said the country is victim of an "economic war" led by political adversaries, said the new monetary measure would bring economic stability to the struggling OPEC nation. But his critics have said the move is little more than an accounting manoeuvre that would do nothing to slow soaring prices. They blame inflation on failed socialist policies and indiscriminate money printing. Because many transactions now happen via debit cards over point-of-sale terminals, many worry that the change - which banking industry leaders have said was carried out too quickly - could collapse financial networks. Maduro has declared a public holiday for Monday, when a new set of bills will be introduced with the lower denominations. Internet banking operations will be halted for several hours starting on Sunday evening. But the primary difference between the upcoming change and Maduro's 2016 currency decision is that in this instance, most of the current ones will coexist with the new notes for an undetermined period while the new bills come into circulation. That will in some circumstances leave consumers in the confusing situation of having to use old bills with face value of 1,000,000 bolivars to make purchases valued at 10 bolivars in the new denomination. Poor Venezuelans without bank accounts have for months been carrying wads of cash to make basic purchases. Buying one kilo of cheese, worth the equivalent of $1.14 at the most widely used exchange rate, requires 7,500 notes of 1,000 bolivar denomination - a note that was only brought fully into circulation in 2017. One bar of soap, which sells for the equivalent of $0.53, requires 3,500 of the same notes. "This is going to be complete disaster, we don't have information," said Yoleima Manrique, 42, assistant manager of a home appliance store in Caracas. "It's going to be crazy for the clients and for us." -- © Copyright Reuters 2018-08-18 Link to comment Share on other sites More sharing options...
Popular Post Bluespunk Posted August 18, 2018 Popular Post Share Posted August 18, 2018 6 minutes ago, rooster59 said: Maduro, who has said the country is victim He’s correct there. It’s a victim of his lunatic policies 5 1 2 Link to comment Share on other sites More sharing options...
rebo Posted August 18, 2018 Share Posted August 18, 2018 18 minutes ago, rooster59 said: Motorists line up for fuel at a gas station of the Venezuelan state-owned oil company Gas station 4.0 ...? 1 Link to comment Share on other sites More sharing options...
Get Real Posted August 18, 2018 Share Posted August 18, 2018 1 hour ago, rooster59 said: Jittery Venezuelans on Friday rushed to shops and lined up at gas stations on concerns that a monetary overhaul to lop off five zeros from prices in response to hyperinflation could wreak financial havoc and make basic commerce impossible. At least it sounds like the people in this country can draw logic conclusions based on analysing the facts standing in front of them. That means they actually have a chance to recover and change things to the better at a later stage in development. 1 Link to comment Share on other sites More sharing options...
Blackheart1916 Posted August 19, 2018 Share Posted August 19, 2018 On 8/18/2018 at 1:27 PM, Bluespunk said: He’s correct there. It’s a victim of his lunatic policies And Chavez before him. 1 Link to comment Share on other sites More sharing options...
Blackheart1916 Posted August 19, 2018 Share Posted August 19, 2018 On 8/18/2018 at 2:56 PM, Get Real said: At least it sounds like the people in this country can draw logic conclusions based on analysing the facts standing in front of them. That means they actually have a chance to recover and change things to the better at a later stage in development. Trouble is, they should have been drawing these conclusions 10 to 15 years ago, but they chose to ignore them as long as there was cold beer and cheap fuel. Even when the food shortages began and food was being imported from Cuba, they were happy with cold beer and cheap fuel. 1 1 Link to comment Share on other sites More sharing options...
Get Real Posted August 19, 2018 Share Posted August 19, 2018 21 minutes ago, Blackheart1916 said: Trouble is, they should have been drawing these conclusions 10 to 15 years ago, but they chose to ignore them as long as there was cold beer and cheap fuel. Even when the food shortages began and food was being imported from Cuba, they were happy with cold beer and cheap fuel. So, true! Link to comment Share on other sites More sharing options...
ELVIS123456 Posted August 19, 2018 Share Posted August 19, 2018 Socialism doesnt work - period - never has, never will. 1 Link to comment Share on other sites More sharing options...
BritManToo Posted August 19, 2018 Share Posted August 19, 2018 14 minutes ago, ELVIS123456 said: Socialism doesnt work - period - never has, never will. Capitalism doesn't seem to work either (unless you want to spend all your money on health care, dentists and education). Link to comment Share on other sites More sharing options...
metisdead Posted August 19, 2018 Share Posted August 19, 2018 Off topic posts have been removed. Link to comment Share on other sites More sharing options...
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