Cost of a cup of coffee is 2 million bolivars in Venezuela!

Moneycontrol News 

Owing to the current situation of hyperinflation in Venezuela's economy, the price of a cup of coffee in the country has increased to 2,000,000 bolivars. 

According to a report in Bloomberg, the price has soared this week from 1,400,000 bolivars the week before. Three months back in April, one cup of coffee would come at a price of 190,000 bolivars. The rise in the price is seen immediately after the forecast made by the International Monetary Fund predicting an inflation of 1,000,000 percent in Venezuela. 

The roots of the current hyperinflation situation can be traced by to last year, after which the country's population has been on the receiving end of poverty and economic instability. And the situation is worsening every passing day. Despite this adverse economic condition of the country, the administration is taking no effort to stabilise the economy. Even the fuel subsidies are not reduced. Till date, the administration has only resorted to policies which fundamentally look very good on paper but has no solution to the problem in practice.

Venezuela’s President Nicolas Maduro is planning to roll out a new currency that will erase some zeros to make life easy. The new bolivar was all set to hit the nation in early August and it would see a reduction 0f three zeros. But there was an announcement from Maduro on late Wednesday that the release would be delayed by a couple of weeks. He explained that they feel erasing three zeros will not be sufficient enough and hence, they are planning to reduce five instead of three.