The Venezuelan government is buying 71 tons of paper to print cash and other governments are doing the same thing
The Venezuelan government is buying tons of paper to print large amounts of cash … But other governments are doing the same thing.
Atención?|| El tipo de cambio publicado por el BCV es el promedio ponderado de las operaciones de las mesas de cambio de las instituciones bancarias. Al cierre de la jornada del lunes 05-10-2020, los resultados son:#MercadoCambiario #BCV?? pic.twitter.com/OxniHa6rBa
— Banco Central de Venezuela (@BCV_ORG_VE) October 5, 2020
The Venezuelan government does not seem to know what else to do to control the economy and is trying to save the way all governments are doing is printing more money.
Sources close to the Venezuelan government revealed that the Central Bank of this country just bought 71 tons of paper to print money. Experts believe that the new batch of paper will print the highest possible denominations: 100,000 Bolivars – or $ 0.22.
This decision is not surprising. The Venezuelan government has been unable to recover from an economic crisis caused by an almost total reliance on oil, one of the most corrupt governments on the planet, and dozens of unilateral sanctions imposed by the United States imposed.
Despite the sanctions, Venezuela was mostly dollarized. Banks have no cash to hand over, and money is even smuggled in many parts of the country. People also accept conversion: transfer 10 million into a bank account and receive 7 million in cash. However, this situation is no longer as common as it used to be.
The Venezuelan government and the United States are printing more money than ever
But not just Venezuela, the United States is still implementing a similar strategy.
During the coronavirus pandemic, the Federal Reserve printed almost a million dollars per second, and the debt is now at historic highs, unable to pay off in the short term.
You can track the US debt developments in real-time here.
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