The Venezuelan government announced the replacement of the largest denominations of 100 Bolivar coins.
The authorities hope that in this way they will be able to cope with smuggling and food shortages, and commodities.
Exchange of notes allotted only three days. President Nicolas Maduro said on television that smugglers operating on the border, will not have time to exchange all their money.
Maduro said that he ordered to block all paths of delivery of smuggled money from abroad.
In Venezuela there is a sharp shortage of food and other commodities amid the world’s highest inflation rate.
Speculators are buying up cheap goods and resell on the black market, which leads to a shortage. The country is shaken by protests over lack of food.
The inflation situation is worsening every month. In November, the value of the Bolivar on the black market dropped against US dollar by 60%.
Now 100 Bolivar is about two cents. To pay in the shop or cafe, Venezuelans have to carry bags full of money.
On 4 December the Central Bank announced plans to issue new banknotes of 500 to 20 thousand Bolivar.
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