Venezuela To Overhaul National Currency Starting From Monday Amid Hyperinflation

MOSCOW (UrduPoint News / Sputnik - 20th August, 2018) The Venezuelan government will redenominate the ailing national Currency, dubbed the bolivar fuerte (Spanish: ''strong'' bolivar), starting from Monday amid hyperinflation.

The new Venezuelan currency, the bolivar soberano (sovereign bolivar), will start circulating on August 20 and will be tied to the Petro, an oil-backed digital cryptocurrency launched by Caracas in February.

The foreign exchange rate of the Petro cryptocurrency would be fixed at $60, or 3,600 redenominated bolivars.

Moreover, five zeros would be knocked off the national currency, which traded 5.9 million to $1 on Friday.

Venezuela has been struggling with political and economic fallout of a global slump in oil prices and US sanctions after Washington blocked its investors from buying Venezuelan debt. It also prohibited dealing in Venezuelan digital currencies.