South American countries have high inflation levels in Venezuela. Last year, in order to suppress inflation, the country cancelled four zeros on banknotes. How’s the effect? According to local councils, the local inflation rate in May was 815,194%, which was less than 1,000,000% after one year. The country’s central bank announced that it would issue three large-value denominations of 10,000, 20,000 and 50,000 bolivars to increase payment rates and facilitate commercial transactions.
However, the central bank did not announce more detailed information.
In Venezuela, which has continued to cope with super inflation in recent years, a number of measures have been taken, but the results do not seem to be too prominent. In an environment with up to six-digit inflation levels, local currency is equivalent to waste paper. Consumers are either paying by credit card or electronic transfer, and are increasingly dependent on the US dollar and common currencies in other countries.
However, regulated goods such as gasoline and services such as public transportation are still to be paid through the national currency.