The Venezuelan bolivar has fallen to 30 pesos per dollar, according to the central bank, marking the currency’s latest decline as the country suffers from one of the world’s highest inflation rates.
According to central bank figures, the annual growth in consumer prices for June surpassed 404%, with economists predicting that inflation will continue to accelerate this year.
Since the end of 2021, Maduro’s socialist government has attempted to contain rising prices by slashing state spending, imposing credit limits, and raising taxes. They have also attempted to increase the availability of foreign cash to local banks, but the methods have had no effect on the country’s raging inflation rate.
According to Sintesis Financieras, a local business, the central bank has offered local banks roughly $1 billion since early this year. Meanwhile, Chevron (CVX.N), a subsidiary of the American oil company Chevron, reported foreign currency sales of roughly $400 million from February to July.
While public employee salaries remain unchanged, the government does give bonuses, which translate into higher spending.
