The new notes of 10,000, 20,000 and 50,000 bolivars that went into effect this Thursday in Venezuela will not increase the monetary liquidity nor generate more inflation in the country, on the contrary, they will consolidate payments to accelerate transactions and the economy, said on Thursday economist Tony Boza.
During a telephone contact with the Venezuelan News Agency (AVN), the Venezuelan analyst defined the measure as “positive because it will mean a greater amount of payment means.”
“It is false what some economists say that the entry into force of new bills will generate more liquidity in the street and will generate more inflation. It is absolutely false”, he reiterated.
Boza explained that the new monetary pieces will facilitate the transactions. For example, users who make a bank transaction and want to obtain one million bolivars, the result will be the same if the bank dispenses 100 and 500 bolivars bills or simply the user receives bills of 10,000 or 50,000 bolivars. “The amount of money in circulation is going to be exactly the same”, he explained.
He also explained that the three new banknote denominations that come into circulation expand the monetary cone to eleven monetary pieces: 2, 10 20, 50, 100, 500, 10,000, 20,000, 50,000 and 0.5 and 1 bolivar coins.
Because in recent years the means of payment in the country have been negatively impacted, as a result of the unilateral and illegal sanctions promoted by the United States administration, the Central Bank of Venezuela (BCV) develops positive measures to offer alternatives to the people Venezuelan, as the expansion of its monetary cone, among others.
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