CARACAS (Reuters) – Venezuela this week is rolling out larger-denomination banknotes as hyperinflation batters the crisis-stricken South American country’s bolivar currency.
Bills worth 200,000 and 500,000 bolivars – worth just 10 and 27 U.S. cents, respectively, at the current exchange rate – began to circulate on Monday, according to Reuters witnesses.
Venezuela’s central bank said this month it also planned to roll a bill worth 1 million bolivars, just 50 U.S. cents.
The highest-denomination bill had previously been 50,000 bolivars. Annual inflation in the once-prosperous OPEC nation was running at 2,665% in January, contributing to chronic shortages of cash.
“These bills in a few months will not be worth anything anymore, because in this country prices rise very quickly,” said Rafael Alvarez, a healthcare worker who left a bank carrying one 200,000 bolivar bill and four bills worth 50,000 bolivars each.
All that is equivalent to just 20 U.S. cents.
The central bank did not respond to a request for comment.
In addition to the higher-denomination bills, President Nicolas Maduro is seeking to boost digital payments in the face of the cash shortage.
While Venezuelans use debit cards for many day-to-day transactions, some services – namely public transit – still only accept cash.
“These new bills will not resolve the cash crisis. They will only pay for transit fare,” said Evelyn Mendoza, a 47-year-old cook, as she waited in a long line to withdraw cash from a bank in the capital, Caracas.