‘Runaway inflation’ in Venezuela has reached the point where bank notes are being weighed rather than counted.
The country’s currency, the bolivar has devalued so much that traders have given up counting the huge wads of banknotes handed over by their customers.
Last month it emerged that new 20,000 bolivar notes will be produced to keep up with the rate of inflation. At the moment the highest banknote in circulation is 100 bolivars.
Traders have taken to weighing money rather than counting it because of runaway inflation in Venezuela
Describing the situation at his delicatessen counter in Caracas, Humberto Gonzalez told Bloomberg that the sheer volume of bills needed to pay for everyday items makes life hard for traders.
He said: ‘It’s sad. At this point, I think the cheese is worth more.’
The inflation rate in Venezuela is expected to reach 480 percent this year, and 1,600 percent by 2017.
economic crisis deepens.
Jesus Casique, financial director at consulting firm Capital Market Finance, told Bloomberg: ‘When they start weighing cash, it’s a sign of runaway inflation.
‘But Venezuelans don’t know just how bad it is because the government refuses to publish figures.’