Venezuela drops six zeros from money

In Venezuela, where the world's highest inflation rate is seen, a radical decision was taken regarding the currency.

In Venezuela, which uses the "bolivar" as its currency, new banknotes with six zeros have been introduced.

NO SIX ZERO IN NEW BANKNOTES

The highest banknote ever printed was 1 million bolivars, equivalent to a quarter of its value. The highest of the new banknotes, 100 bolivars, is worth close to $25.

This change aims to streamline both cash transactions and accounting calculations.

"NUMBER OF STEPS MAKES PAYMENT SYSTEMS IMPOSSIBLE"

"The most important and fundamental reason is that payment systems have already collapsed because the number of digits makes payment systems and math impractical," said Jose Guerra, professor of economics at the Central University of Venezuela. said.

Guerra said that due to shortages in cash, most transactions are done electronically and more than 60 percent of spending is in US dollars.

WILL NOT AFFECT THE VALUE OF THE CURRENCY

According to a statement from the Central Bank of Venezuela, the change will not affect the value of the currency. The bolivar will not be "more or less valuable", it will just be easier to use on a simpler monetary scale.

Banks had stated that they would freeze operations for a few hours on September 30-October 1 to make adjustments regarding the change in question.