In a desperate bid to curb its runaway inflation rate, Venezuela has lopped five zeros from its currency. The move yesterday, which came along with a 95% devaluation of the currency—known as the “strong bolívar”—was also accompanied by a hike in gas prices and a 3,000% increase in the minimum wage.
New banknotes for the currency, now called the the “sovereign bolívar”, were introduced. The redenominated bolívar is now pegged to the petro, a state-run cryptocurrency that doesn’t trade and some consider a scam.
In a more practical sense, though, the move will lighten the load. Before this week, Venezuelans needed stacks of cash to buy the most basic goods, as captured by a remarkable series of photos by Reuters. With the IMF predicting that inflation will hit 1,000,000% by the end of the year, this latest fix may not last very long.