Venezuela has been deleting six zeros on all banknotes since October

Venezuela has been deleting six zeros on all banknotes since October. This was announced on Thursday by the local central bank, which decided to change the nominal value of its devastated bolivar currency for the second time in the last three years due to hyperinflation. The plan will not change the effects of the collapse of the Venezuelan economy, which has forced millions to emigrate from this South American country. However, day-to-day money transactions could be easier thanks to this step, Reuters reported. Most of Venezuela's economy has been pegged to the dollar since 2019. At that time, local authoritarian President Nicolás Maduro abolished most of the controls over pricing and exchange rate developments. The practical impact of the announced step will probably be weaker than in 2018, when the central bank cut five zeros. It thus responded to the massive rise in inflation, which reached 1.8 million percent. Former President Hugo Chávez cut three zeros from the bolivar value in 2008. "Bolivar will have neither more nor less cost, but to make it easier to use, we are adjusting it to a simpler scale," the central bank said in a statement. The banknote with the highest nominal value will now be 100 bolivars, which will correspond to the current amount of 100,000,000 bolivars. The banknote with the highest denomination is now one million bolivars, but there is great interest in them and there is a shortage of them in circulation. For example, more than seven are needed to buy a five-liter water canister, as it costs 7.4 million bolivars. For years, Maduro has been blaming inflation on US sanctions, which the United States says he is trying to force him to resign. The president also talks about the economic war, which he says is being waged against Venezuela by big business bosses and political opponents. However, economists and opposition leaders claim that the inflation was caused by the central bank, which recklessly printed new money to pay for rising public spending. The Venezuelan economy is in disarray after years of hyperinflation, the decline of the once booming oil industry, and also due to US sanctions that have crippled Venezuelan oil exports. According to experts, only large investments in infrastructure would bring a significant improvement in the situation. However, under the current conditions, these are unfeasible due to lack of funds and sanctions, as a result of which most foreign companies do not want to cooperate with the Venezuelan government.