Venezuela is being crushed by staggering hyperinflation as a sharply divisive political crisis has the economy in ruins. Some are seeking refuge in alternatives to the national currency, like foreign fiat and crypto. The situation also calls into question the long-term trajectories of other, less volatile economies. National banks globally have been consistently struggling to balance fiat value against interest rate policy now for decades.
Soaring Inflation in Venezuela
Hyperinflation in Venezuela has been projected by the IMF to reach 10,000,000% some time this year. The Venezuelan AN (Finance Committee of the National Assembly) puts the final inflation rate for 2018 at 1,698,488.2%. According to recent statistics, that number has since fallen below 1,000,000%, but the reasons for this are unclear, and the numbers are being called into question.
While data from different government agencies and economic research groups vary, what is agreed upon is that the Venezuelan bolivar (VEF) has been rendered almost worthless. With the divided Venezuelan government in shambles, an economic crisis has emerged where consistent and reliable data is not easy to come by. And more importantly, where basic survival has become a challenge for large numbers of individuals living in the country.
Venezuelan Government Reports Questionable Trends