Venezuela: financial crunch, earthquake

Written by David Fletcher 24 Aug 2018
Venezuela: financial crunch, earthquake

On 22 August Venezuela’s northern coast was rocked by a 7.3 magnitude earthquake felt across the Caribbean and hundreds of kilometres away in Caracas where political leaders were celebrating their new economic plan to rescue the crumbling economy from rampant hyperinflation. They drastically removed five zeros from the bolivar and pegged it to a cryptocurrency (digital currency operating independently of a central bank) while raising the minimum wage by 3,000%. Economists fear this will worsen the financial crisis that has driven over 500,000 Venezuelans overseas this year, and warn that inflation rates could go even higher. The financial crunch and earthquake are symbolised by social media photographs showing ‘the Tower of David’, a notorious and symbolic abandoned skyscraper, now a horizontal slum, that was severely damaged by the quake. The proven oil reserves in Venezuela, recognised as the largest in the world (297 billion barrels), have been corruptly mismanaged. See also

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