Inflation has hit its highest point in Venezuela, where the country’s currency is near worthless as people attempt to evacuate the increasing chaos.
So far, a total of two million people have vacated the country in search for better conditions, and a startling 90 percent of people are living in poverty.
The government, headed by President Nicolas Maduro, has seen deep recession since 2013 due to economic policy and oil price plunges.
In a desperate bid to avert further crisis, the government has employed some new measures.
How bad is Venezuela’s inflation?
Venezuela is currently suffering from the results of oil devaluation, something the country has put massive emphasis on.
During the rule of Hugo Chavez, the country saw success built off the back of the oil boom.
Nicolas Maduro hoped to offset the effects of the crisis by printing more currency.
The result of this policy has led to serious hyperinflation, which has destroyed crucial economic sectors.
In figures, the current inflation rate runs at 100,000 percent, and the hard currency in the country is essentially worthless.
The inflation puts many Venezuelans with hundreds of millions of national currency ‘Bolivar’ in their account, often barely enough for toilet paper.
Millions of people are now evacuating as a result, in a crisis being compared to the Syrian exodus in the Middle East.
Maduro has thus far blamed the rising inflation of private business and the opposition, and solutions to the crisis have received little support.
What is being done to curb inflation?
Nicolas Maduro has come forward with a number of ideas to combat the extreme inflation in hopes to prevent the crisis escalating.
Mauro has so far devalued Venezuela’s currency by 95 percent, and added a new currency which threw off five zeroes – the Sovereign Bolivar.
The bizarre move was also accompanied by a 3000 percent minimum wage hike, and currency auctions were to continue to determine a new exchange rate.
Maduro’s latest attempt at resolution has seen the use of gold in providing some kind of anchor for the country.
Under the President’s orders, the country will apparently begin to sell certificates backed by gold ingots.
The new certificates are to be used to help preserve savings, and avoid the extreme inflation on Venezuela’s currency.
Of the policy, Maduro said: “We have found the formula to advance towards socialism, equality and the development of national productive forces.”