Venezuela has the largest proven oil reserves on the planet but its currency in the meltdown, last month, Inflation soar 1000000% similar to 1923 Germany, Express reported.
Venezuela’s five-year crisis has reached the bottom and has left many of its people unable to afford food and medicine. The bare shelves in supermarkets, crime rates continue to set records are not surprising for the local residents who fear to leave the house at night. Inflation rate at 1000000% is not a record in the modern financial world, the same situation happened with Germany almost a century ago, in 1923.
According to the experts, Venezuela’s inflation could reach one million per cent by December, reflecting an economic crisis comparable to Germany’s after the first world war and Zimbabwe’s at the beginning of the last decade. Venezuelans have turned to electronic transactions, despite 40% of the population do not have bank accounts. Meanwhile, others are unwilling to use credit cards or bitcoins to pay for the smaller items, so bartering has become common.
Venezuela’s crisis is deepening month by month
Venezuela with its unbelievable rich oil reserves is in the midst of a financial and economic crisis. Most of the population blame President Nicolás Maduro, who in turn alleges that Venezuela is on the receiving end of an “economic war” waged by the United States and Europe.
The collapse in economic activity, hyperinflation, and increasing deterioration in the provision of the most important sectors like health care, electricity, water, transportation, and security. Meanwhile, the shortages of food at subsidised prices have resulted in large migration flows, which will lead to intensifying spillover effects on neighbouring countries.
The IMF also noted in their financial notes that shortages in electricity, domestic water and public transportation are severely hampering millions of people.