A 60-fold minimal monthly wage increase was announced by Venezuelan president Nicholas Maduro. Once his financial reforms are in place, each Venezuelan will be paid at least 0.5 petro each month.
The current national currency, bolívar fuerte, is one of the fastest depreciating currencies of the world. According to the IMF, the inflation is expected to reach 1 million% by the end of the year.
Beginning from 20th of August, the Petro (PTR) will be exchanged for $60, approximately a price of a barrel of oil on international markets.
A massive increase
In August Venezuela will introduce a new currency, the bolívar soberano, which will remove 5 zeros from the current bolivar. The new currency will also be connected to PTR. The increase of minimum salary to 0.5PTR actually means a HUGE, 60-fold pay rise.
The current minimum wage is 3 million old bolivars (which will become 30 new after the denomination), while the new minimum wage will be raised to 1800 new bolivars. Small and medium businesses will be compensated for the difference in wages in the next 90 days. The VAT will increase from 12% to 16%.
Venezuela became the first country ever, to issue its own cryptocurrency. The Petro is backed by country’s oil reserves, which are amongst the largest in the world.
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