According to the Central Bank’s report on Friday, Venezuela, a country that frequently undergoes high inflation rates, ended the year 2023 with a 189.8 percent rise in bolívar prices. This increase was lower compared to the previous year’s 234 percent.
Argentina had the highest inflation rate among Latin American countries last year, as indicated by the data released by the monetary institution in Caracas.
Venezuela is currently facing one of the most severe inflation crises globally as its economy has become mostly reliant on the US dollar due to years of recession and hyperinflation.
Last year, the inflation rate in the country reached a staggering 686 percent.
The country experienced a severe economic crisis, leading to an 80 percent decrease in its GDP from 2013 to 2021.
The Central Bank’s reported number aligns with estimates made by private institutions like the Venezuelan Financial Observatory. The OVF had forecasted a 193 percent inflation rate for the country’s currency, the bolívar.
The OVF stated that the decrease in pace was caused by the bolívar experiencing less depreciation and the implementation of a “salary reduction” policy, with no salary increases since May 2022.
In 2018, the Venezuelan government made an attempt to embrace cryptocurrencies. This decision was driven by the country’s high inflation rate and the US embargo on oil. However, the state cryptocurrency called “Petro” is set to vanish on January 15 due to its perceived failure as a currency and involvement in a corruption scandal.
Venezuela can find solace in the fact that it no longer holds the record for the highest inflation in 2023.
This title has been taken over by Argentina, where the peso prices experienced a 211 percent rise. This was a result of the gradual depreciation of Argentina’s currency and the new president, Javier Milei, implementing a 50 percent devaluation shortly after assuming office in December.
– TIMES/AFP
