The correct conversion to the new Sovereign Bolívar can now be verified through the Android application launched by the Central Bank of Venezuela.
Venezuela's ongoing economic crisis could mean inflation will reach 1 million percent this year, rendering paper money effectively worthless.
Nicolas Maduro is trying to stop hyperinflation by all possible means, including using his cryptocurrency “petro” as the official unit of account.
Last week, the president announced a new currency, the “sovereign bolivar.” Adding to the confusion, Maduro noted that he plans to link wages, prices and pensions to the Petro, a cryptocurrency announced by the government back in February, but which has never fully taken effect in the country.
According to the president, one Petro (PTR) is equal to 60 US dollars or 3.6 thousand Sovereign Bolivars, and a single exchange rate will be calculated in the future.
Today in the country, the largest old the paper note is 100,000 bolivars, but it costs only 3 cents on the black market. One cup of coffee costs more than 2 million bolivars, although this amount is increasing every day. The new currency will have two coins and paper notes ranging from 2 to 500.
Last Monday, banks across the country closed in anticipation of the launch of the “sovereign bolivar.” The old and new currencies will remain in circulation together during the transition period, so the coming period promises to be very confusing for both consumers and the business sector.
Apparently to make it easier, the Central Bank of Venezuela has launched an Android conversion app. The Calculadora Soberana (Sovereign Calculator) application converts the old national currency (Bolivar) into the new currency - Sovereign Bolivar. The essence of the entire conversion is the absence of 5 zeros in the new currency, so the application is not designed for intricate calculations, but rather is in the nature of psychological support designed to help Venezuelans adapt to innovations.
The application can be downloaded through the Google Play store, where it has a rating of 4.7 and over 10 thousand downloads.
The developers of the service, traditionally, were the government-supported company Comunicacion Digital VE..
Despite Maduro's best efforts, most economists warn that none of the Venezuelan government's efforts will address the underlying problems and will likely worsen the existing crisis.
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