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Some Challenges For Primary Aspects For

In Venezuela, Cooking With Firewood as Currency Collapses

Credit Meridith Kohut for The New York Times It’s a pattern that leaves people like Olympia Jiménez, a 49-year-old waiter in Caracas, terrified about his wages and tips. They’re vanishing, he says, because even when people are well off enough to eat at a restaurant, they cannot carry enough bills to leave even a small tip on the table. Mr. Jiménez’s solution: He leaves clients his full name, address and banking details so they can transfer money to his checking account. “They’ve given me up to 40,000 bolívars that way,” he said, which is about $2.50 at the current black market exchange rate but would require a staggering amount of cash in a country where the main note remains the 100 bolívar bill. Many economists trace the inflation to problems at the state oil company. As the company’s production declined, it became increasingly dependent on the outside world, depending http://alphoe3475501610.tosaweb.com/an-a-2-z-on-painless-topickeyword-strategies on foreign companies to pump its oil and even on the United States for the crude oil used in refining. Now the use of these foreign contractors is generating steep bills at a time when the company has little income to pay them. The Venezuelan government’s answer has been to pay in bolívars whenever possible and to print more cash. In a single week in late July, the country’s monetary base, or the amount of cash that exists in the country, rose by 13 percent, the highest increase many economists said they had ever seen. While printing more cash shores up the oil company in the short-term, it lowers the value of the currency for Venezuelans.

For the original version including any supplementary images or video, visit https://www.nytimes.com/2017/09/02/world/americas/venezuela-nicholas-maduro-inflation-economic-collapse.html

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