Monday, December 05, 2016 | Updated at 7:17 AM ET

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Venezuelan inflation hits currency with arrival of bigger bills, more development plans revealed here!

First Posted: Dec 01, 2016 03:21 PM EST
Peace march in Venezuela

Peace march in Venezuela(Photo : Anadolu Agency / Contributor/ Getty Images )

Venezuela is currently experiencing inflation over the past weeks. In line with that matter, the Venezuelan government announced that bigger bills will be coming soon.

According to Bloomberg, Venezuelan authorities are now preparing to officially issue larger denomination of bank notes. Through this, there will be bigger advantages for the shopper of the said country.On the other, there were some issues faced by the country recently.

This will be launched in the middle of the next month which is December- a time for some holiday shopping. The 500 and 5,000 bolivars will be included in these newly generated bank notes. Moreover, there will be additional bills of 1,000, 2,000, 10, 000, and 20, 000 bolivars. These bank notes will be entering the first half of 2017 in Venezuela.

In the past months, the refusal of the Venezuela authorities to issue larger denomination of bank notes had impacted the Venezuelans. They have replaced their wallets into bags of cash in everyday transactions. Well, the situation got worse when some of the consumers in the market started to weigh their bank notes instead of counting them. It helped them to save time. Also as reported in Zero Hedge, the economists and the central bank employees did not want to recognize the country's inflation problem by printing out bigger bank notes.  

In an estimate of 14 economic analysts who have participated a survey of Bloomberg, the Venezuelan inflation might end at 368%. Even if it will continue to increase next year, the inflation rate will not reach four digits.

Moreover, the Venezuelan government will be using a new currency law as signed by President Nicolas Maduro. This will help in order to increase the use of U.S dollars in the tourism sector of Venezuela. They plan to develop certain tourist spots like Margarita Island's Macanao Peninsula and the nearby La Tortuga Island.

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