The Venezuelan economy is in freefall, crippled by a currency crisis that has seen inflation soar to farcical levels. The country’s populist government introduces measures on Monday aimed at halting the collapse.
The Venezuelan currency has become near-worthless due to a spiraling hyperinflation. Reuters photographer Carlos Garcia Rawlins found a unique way to show how many bolivars one must carry for grocery shopping in Caracas.
Image: Reuters/C. G. Rawlins
Millions for chicken
You will need to shell out a whopping 14.6 million bolivars ($2.2, €1.9) for a 2.4 kilogram chicken in Caracas.
Image: Reuters/C. G. Rawlins
Expensive deal
A kilogram of tomato will set you back by 5 million bolivars.
Image: Reuters/C. G. Rawlins
Serious crisis
Be ready to pay 2.6 million bolivars for a toilet paper roll in the Venezuelan capital, Caracas. Yes, you read it right.
Image: Reuters/C. G. Rawlins
Worthless currency?
Three-and-a-half millions — that's how much you will have to pay for a packet of sanitary pads in Caracas.
Image: Reuters/C. G. Rawlins
Which is heavier?
One kilogram rice? Well, that will cost you 2.5 million bolivars.
Image: Reuters/C. G. Rawlins
Is it worth?
A packet of diapers for your baby can you set you back by a staggering 8 million bolivars.
Image: Reuters/C. G. Rawlins
Forget saying 'cheese'
You will have to cough up 7,500,000 bolivars for a kilogram of cheese. But hold on, that may change with the Venezuelan government set to issue new paper money with five fewer zeros. So, just 75 bolivars for a kilogram of cheese.
Image: Reuters/C. G. Rawlins
7 images1 | 7
A raft of new measures comes into effect in Venezuela on Monday, in the latest attempt to deal with the country's growing economic crisis.
The other measures announced by Maduro (pictured above), a former union leader who came to power five years ago following the death of Hugo Chavez, include a massive hike of the country's minimum wage as well as new official exchange rate arrangements.
The reform plans are the latest attempt to halt the oil-rich country's ongoing economic collapse, caused by years of populist policies which have ultimately destabilized the country's economy.
A chaotic scenario
Analysts were initially skeptical about the possible benefits of the latest measures.
"There will be a lot of confusion in the next few days, for consumers and the private sector," Asdrubal Oliveros, director of the Ecoanalitica consultancy, told AFP. "It's a chaotic scenario."
Venezuela's crisis
01:35
This browser does not support the video element.
In Friday's speech to the nation, Maduro said the country needed to show "fiscal discipline" following years of excessive money printing.
As for the minimum wage hike, which also comes into place on Monday, the new monthly rate will be fixed at 1,800 sovereign bolivars. That works out at more than 34 times the previous rate, based on the black market valuation of a US dollar in the country.
Due to devastating inflation and the persistent devaluation of the bolivar, the existing monthly minimum wage rate is barely enough to buy a kilo of meat in the capital city.
Hyperinflation has crippled the Venezuelan economyImage: picture-alliance/dpa/R. Pena
Maduro has consistently blamed others for the economic difficulties and over the weekend, his government defended its role in the ongoing crisis.
"Don't pay attention to naysayers," Information Minister Jorge Rodriguez said. "With oil income, with taxes and income from gasoline price hikes, we'll be able to fund our program."
Since Sunday, electronic transactions have been suspended in the country in order to facilitate the currency switch. However, considering that Venezuela has made similar moves before, hopes are less than high that the reforms will work.
"Everything will stay the same, prices will continue to rise," 39-year-old Bruno Choy, who runs a street food stand in Caracas, told AFP.
Venezuela on the brink
Venezuela is facing collapse amid multiple crises. DW takes a look at what has brought the oil-rich nation to its knees.
In March 2017, violent protests erupted across the country in response to a Supreme Court decision to strip the legislative branch of its powers. Amid an international outcry, President Nicolas Maduro reversed the decision, but it was too late. Thousands continued to take to the streets, calling for new elections. More than 100 people were killed in clashes with security forces.
Image: Getty Images/AFP/J. Barreto
Hunger, a growing problem
The violence added to the ongoing economic and political crisis in Venezuela. Many Venezuelans spend more than 30 hours a week waiting in lines to shop, and are often confronted with empty shelves when they finally enter a store. President Maduro blames the crisis on US price speculation. The opposition, however, accuses the Socialist government of economic mismanagement.
Image: picture-alliance/AA/C. Becerra
Health care in crisis
The crisis has even affected health care in the oil-rich nation. Venezuelans often head to Colombia to collect medical supplies to send home, as seen in this picture. Hospitals across Venezuela have compared conditions to those seen only in war zones. As patient deaths rise, health officials have sounded the alarm on the rise of malaria and dengue fever.
Image: picture alliance/dpa/M.Duenas Castaneda
Power grab
By July 2017, Venezuela's pro-government Constituent Assembly was established. For observers, it had all the hallmarks of a power grab. The new body adopted the authority to pass legislation on a range of issues, effectively taking away the powers of Venezuela's elected congress, which was under the opposition's control. The move drew wide international condemnation.
Image: picture-alliance/dpa/P. Miraflores
The West sanctions
In response to the political crisis, the United States and European Union imposed a series of sanctions against ruling officials. The US blacklisted members of the Constituent Assembly and froze all of Maduro's assets that are subject to US jurisdiction. The EU banned arms sales to the country.
Image: picture-alliance/dpa/AFP/T. Schwarz
Government victorious in regional elections
In October 2017, Venezuela held two votes: regional elections and elections for governors, which were long overdue. The opposition boycotted the vote, but then split, as some candidates and small parties chose to participate. This caused a deep rift within Maduro's opponents. The government went on to sweep the vote, which detractors say was unfair and heavily favored the regime.
Image: picture-alliance/AP Photo/A. Cubillos
Debt default
In November 2017, the oil-rich, cash-poor nation faced its day of reckoning. Credit ratings agencies declared Venezuela and its state-run oil company in "selective default." But Russia offered to restructure the South American country's debt to ensure Caracas pays its other creditors. US and EU sanctions, however, limited the chance of an agreement.
Image: picture-alliance/AP Photo/A. Cubillos
Presidential elections scheduled
The National Assembly announced in January 2018 that it would grant Maduro's call for snap presidential elections. The electoral authority, CNE, held the elections on May 20. The EU, the US and 14 Latin American nations warned that they would not recognize the results. The mainstream MUD opposition alliance boycotted the vote, leaving only one possible outcome.
Image: Getty Images/AFP/F. Parra
Maduro wins ...
Maduro was re-elected to a second six-year term with about 68 percent of the vote. Turnout was only 46 percent, according to electoral authorities. However, the MUD opposition alliance put turnout at less than 30 percent. The Organization of American States (OAS) called the elections neither free nor fair.
Image: picture-alliance/AP Photo/A. Cubillos
... Guaido assumes power
But weeks into the new year, the situation took a drastic turn. On January 23, 2019, parliament president Juan Guaido declared himself interim president of Venezuela — a move that was quickly recognized by US President Donald Trump. Maduro called it a US-backed "coup." Days later, the US sanctioned Venezuela's state oil firm, while Guaido staked his claim on the country's foreign assets.
