Venezuela extends use of currency bill

Venezuela’s government on Saturday extended the use of its 100-bolivar bill until Jan. 2, after its decision to pull the banknote out of circulation left the country largely without cash and sparked protests and looting.
President Nicolas Maduro said the decision to put Venezuela’s most widely used note back in use came after the promised higher-denomination replacement bills were still unavailable because three planes transporting them were “victims of sabotage.” He did not give details of the alleged sabotage.
The “new logistics” of rolling out the banknotes, including the 500-bolivar bill, meant that their launch would have to wait, Maduro said in a televised address.
Venezuela is plagued by the world’s highest inflation, and Maduro made the surprise announcement that the 100-bolivar note would be replaced a week ago. All week, Venezuelans waited in long lines to deposit their soon-to-be-worthless 100-bolivar notes in banks.
When the bill went out of circulation on Friday and the replacement bills had not yet arrived at banks or ATMs, people were forced to rely on credit cards or bank transfers, or to try to make purchases with bundles of hard-to-find smaller bills often worth less than a penny each.
On Saturday, hundreds of government supporters and ruling party members dressed in red shirts marched in Caracas to back Maduro and protest the “economic war” against Venezuela.
In addition to putting the old currency back in circulation, Maduro said he would extend the closure of the border with Colombia and Brazil until Jan. 2. He has said the move aims to thwart “mafias” who hoard bolivars, leading critics to mock the notion that gangsters would choose to keep their wealth in the world’s fastest-devaluing currency. The 100-bolivar bill is worth little more than 2 cents.
Only foot traffic for family visits will be allowed, he said. Despite the closure, dozens of Venezuelans knocked down barricades set up on the bridge between Urena, Venezuela and Cucuta, Colombia to cross over and buy food.

Source: Arab News