Hi Friends....
Here is a very shocking incident of Venezuela i.e. hyperinflation. We have to took into the matter and concern about this.
The South American country is spiraling further into a humanitarian disaster imbued by the government's economic policies, which have caused inflation to skyrocket 83,000 percent in the past 12 months, according to a recent study by the opposition-controlled National Assembly .
Venezuelan parliament issued fresh economic data , showing that inflation for the month of July spiked 110.1 percent compared with June, and sending annual inflation to 24,571 percent in the financial year. Daily inflation running at 2.4 percent, the country's currency, the bolivar, plunged about 98 percent in the course of the past 12 months alone. This is really matter of huge volatility of economy .
Prices have been doubling every 26 days on average. This has resulted in many Venezuelans struggling to afford even basic items such as food and toiletries. Small items like a cup of coffee costing a whopping 2.5m bolivars until recently, it also became increasingly difficult to pay for goods in cash.
Photo courtsy: BBC
How did hyperinflation come about?
On the most basic level, there are more people wanting to purchase goods than the number of goods available in the country. Venezuela is rich in oil, and has the largest proven reserves in the world. But arguably it's this exact wealth that increases many of its economic problems.
Venezuela has never bothered to produce much else because it has so much oil. It sells oil to other countries, and with the dollars it earns, imports the goods Venezuelans want and need from abroad.
Its oil revenues account for about 95% of its export earnings. But when the oil price plummeted in 2014, Venezuela was faced with a shortfall of foreign currency. As a matter of fact people are migrating nearest countries to live due to hyperinflation of the country.
This in turn made it difficult to import goods at the same level as before, and imported items became scarcer.
The present situation is that the government of the country is trying to settle down the matter. Many method have been applied but there is no satisfactory result. They are consulting with IMF and World Bank to short out the problem.
Our Concern:
The Honchos of every Economy around the Globe should be concerned about the matter and they should guide their economic system properly. After all, We have to learn from other's faults also.
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This post has received a 19.35 % upvote from @sharkbank thanks to: @bindas.
How is this possible?????
Its already happening in Venezuela...
Their economy is such a volatile economy...
Beware, if you are planning to go there :D
No...I don't want to be migrated...
I am happy in my country.
You can apply for immigration.
No dear m also happy in my own country.........
You can go there for trade.
It will be profitable.
Haha.. no no you go,I don't want that much of profit..
Venezuela inflation rate is very critical.. currency of Venezuela is just like a normal paper..
Yea ...you are right...
Their currency, boliviar, is not economically well established. It often fluctuates.
Thanks for your valuable information
you are most welcome....
Nice information
Thanks
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Congratulation @bindas
For your first payout in Steemit....
How can I get it?
Will make a video soon..
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This post has received a 3.13 % upvote from @drotto thanks to: @bindas.
Thanks a lot ...
How is it possible?? it is just unbelievable.
It's happening there....
Really unbelievable....
Unbelievable.
Currency like normal paper.
Too bad for them
They are struggling with very miserable economic system.
Inflamation is just make venezuela top of the ranking board...
It has succeed to make their currency just like useless paper!!!
ha ha ...
Yea ...
We also have to study the case and take necessary steps to stabilise our economy.
Please focus on some light on it...
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Very informativeblog
It has become more informative with your heart-felt participation.
Congratulations @bindas!
Your post was mentioned in the Steemit Hit Parade for newcomers in the following category:
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Thank you....so much...