Venzuelan President Nicolas Maduro said on Friday Dec 02,2016 Venezuela would issue higher denomination bills "very soon" as soaring inflation and a crumbling currency leave the crisis-stricken country’s largest note worth just 2 U.S. cents on the black market.
Still, the long-awaited entry of 500 and 5,000 bolivar notes will only bring a brief respite amid rapid money printing and a weakening currency.
Today 5,000 bolivars buy just over $1 on the black market, which exists because Venezuela introduced currency controls in 2003 but does not offer enough dollars to meet demand.
Venezuela is believed to have the world’s highest inflation, although no data has been published for 2016. Money supply rose 12 percent in the last two weeks while the bolivar weakened 65 percent in the last month.
As a result, Venezuelans often carry backpacks full of bills and cash machines frequently run dry due to long queues.
People line up to withdraw cash from an automated teller machine (ATM) outside a Banco de Venezuela branch in Caracas, Venezuela November 25, 2016
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