As you all know about the great economic and social disaster that Venezuela is living today more than anything else among its supporters and the precarious economic state that can be even much worse than it can be I have lived in Venezuela for more than 24 years and in that 24 years I have not seen a more bad management as the one that is happening today of course the media The international and national media, at least the few that still remain, reflect an indication that Venezuela is going to reach a turning point where the only solution will not only be a change in the administration of the country, but also to regularize the currency conversion, eliminate the bolivar forever and move on to polarization of the country completely, as in the case of Ecuador.

taking zero out of your currency does not stop inflation

His sporadic notes eventually prove, however, what independent specialists point out about hyperinflation: in 2018 alone, Venezuelan inflation was 130,060%; in 2019, 9,585.5%; in 2020, 2,959.8 percentage points.

Two reconversions, 19 bills and eleven zeros less to the bolivar. This is how the two measures implemented by the government of Nicolás Maduro in a span of three years to face the devaluation of the Venezuelan currency translate.

The first reconversion of his government, which has been in force since August 2018 and will remain in effect until next September 31, did not bear fruit.

When the new monetary cone was announced at that time, under the name of sovereign bolivar, it was born with eight banknotes.

The lowest denomination was the 2 bolivar, followed by the 5, 10, 20, 20, 50, 100, 200 and the highest denomination which was the 500 bolivar.

But in less than a year three new banknotes appeared. In June 2019, the 10,000, 20,000 and 50,000 began to circulate. With this, in just 10 months the previous banknotes passed to a better life. From public transport vans, carriers even threw them into the air, as a sign of the loss of the value of that paper money.

The million bolivar banknote

Three new banknotes appeared in March of this year. On March 8 of that month, bills of 200,000, 500,000 and 1 million bolivars were announced.

In other words, in three years 14 bills of the sovereign bolivar have circulated in Venezuela. The highest denomination in October next year will be worth only one bolivar of what will now be called the digital bolivar.

There will be 19 bills with the five digital bolivar bills.

If the five new bills to be issued (5, 10, 20, 20, 50 and 100) are added. With the exception of the 2, 200 and 500, they are almost the same number that existed when the Sovereign Bolivar was launched.

For economists such as Leonardo Vera, professor at the Central University of Venezuela, this measure will not last long and the country must prepare for a new reconversion.

This Thursday he explained that as long as there is no real fiscal adjustment plan, spending control and other measures to curb inflation, the existence of the digital bolivar will suffer the same fate as its predecessor and so far in force, the sovereign bolivar.

"As in the other reconversions, what is proposed is a simple change of scale, eliminating this time 6 zeros from the current values."

Leonardo Vera, economist

Third reconversion in 20 years of chavismo

In 20 years of Chavismo, this is the third reconversion that Venezuela will have. The first one took place in 2008 when the then president, the late Hugo Chávez, created the so-called bolívar fuerte by eliminating three zeros from the bolívar. It took a decade for his successor to create the sovereign bolivar in 2018 and now in 2021 the digital bolivar.

"This is like mopping the floor without fixing the leak."

Ronald Balza, economist

According to economists, this new reconversion, which will add the 19 banknotes of Maduro, will only serve to simplify financial transactions, in view of the large number of zeros for cash registers and accounting records due to hyperinflation. Although they consider it necessary, they qualified it as insufficient because it is not aligned with a plan to combat inflation or control fiscal spending.

despite all the government's attempts to save the bolivar the truth is that the best worthy way is to let it rest in peace since literally the Dollarization of Venezuela is more than imminent to arrive even though it is not officialized but there is no better way to save the economy of its citizens than to start the new monetary reconversion to come into force. The new monetary reconversion will not only sink even more the bolivar but also the famous "petro" making the collapse inevitable for the population and for the majority living in the territory will cause a strong rejection in the next months or week at least.