Venezuela becomes the first country in the world to issue notes of one million bolivars

The South American country Venezuela has issued new currency notes of one million bolivars to deal with inflation and the financial crisis.

At present, Venezuela’s inflation rate is half the US dollar, or $ 34, in Indian currency. It is also impossible to buy half a liter of petrol in India. Venezuela, once rich and prosperous due to oil wealth, is now suffering from extreme poverty. People are taking bags of money and buying food in polythene packets. So the government has issued large numbers of notes.

The Venezuelan central bank has said it has to issue such large currency notes based on the country’s financial situation. The central bank said the bank would issue Rs 2 lakh and Rs 5 lakh in bolivars next week. Venezuela currently has 10,000, 20,000 and 50,000 Bolivars to control market conditions. The Indian rupee is now valued at 25,569.7 bolivars in Venezuelan currency.

In view of the Venezuelan inflation, it was expected that the government would continue to use high-value currency. So the government has been forced to print high currency currencies due to the failure of the government to contain the situation. Special security papers have been purchased from Italy for the printing of these notes. Italian bans Capitol to hand over 61 tons of security papers to Venezuela.

In Venezuela the largest banknote has become one million bolivars. But it is only half the value of the U.S. dollar. No more than 2 kg of potatoes or half a kg of rice can be purchased in the country.

The Covid 19 epidemic has complicated the situation in the country. The country has been in a state of financial turmoil since the cessation of oil revenues. As a result, the economic downturn in the country is nearing its seventh year. The country’s economic activity is expected to shrink by 20 percent by the end of the year. Venezuela’s inflation has now risen to more than 2,600 percent.

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