International
Venezuela to slash six zeroes from currency
AFP
Venezuela will slash six zeroes off its inflation-battered currency the bolivar to make it easier to use, the central bank said on Thursday.
The change will take effect on October 1 with the issuance of new currency notes, called the digital bolivar.
“All monetary amounts expressed in national currency will be divided by one million,” the central bank of President Nicolas Maduro’s beleaguered leftist government said.
It said the goal of the change is to “facilitate” the use of the bolivar.
It is the third time in 13 years that Venezuela — suffering the worst economic crisis in its modern era — has used such a measure.
In August 2018, the government lopped five zeros off its bank notes, having taken off three in 2008.
In 2018, the government replaced the ironically named strong bolivar with the sovereign bolivar.
The once-wealthy oil producer is enduring its fourth year of hyperinflation and its eighth year of recession.
From January through to May prices rose 265 percent.
Inflation was almost 3,000 percent in 2020 and more than 9,500 percent the year before, according to central bank figures.
“It was an expected decision,” economist Cesar Aristimuno, director of Aristimuno Herrera & Associates, told AFP.
“By itself it was necessary … the billing and accounting processes for companies were already practically impossible.”
People had even resorted to using a shorthand for prices, saying “thousands” instead of “millions.”
There is such a shortage of bolivars that long queues are a regular sight outside banks.
Transactions made in the local currency are usually done by card payment or bank transfer rather than in cash.
Inflation is so bad that the everyday economy now works mainly in dollars, with many stores listing prices in the US currency.
Back in May the government tripled the minimum monthly wage but the new amount was still not even enough to buy a kilogram of meat.
However, Aristimuno warned that while “convenient” this measure will not transform Venezuela’s battered economy.
“We cannot hope for economic miracles from this decision, taking into account that … it comes without any underlying economic announcements” that could reduce inflation or boost GDP.
The Maduro government is under international sanctions championed by the United States, which is pushing for his ouster and does not recognize him as the country’s legitimate president.
With the currency overhaul, the central bank will issue new notes with face values of five, 10, 20, 50 and 100 bolivars and a one-bolivar coin, Communications Minister Freddy Nanez said on Twitter.
International
Erin brings strong winds and storm surge despite weakening offshore
Hurricane Erin weakened to a Category 2 storm on Tuesday but continues to pose a threat to parts of the U.S. East Coast with potentially dangerous flooding, according to meteorologists.
Although the hurricane’s eye is expected to remain offshore, experts are concerned about Erin’s size, as strong winds extend hundreds of kilometers beyond the storm’s center.
In its 18:00 GMT bulletin, the U.S. National Hurricane Center (NHC) lifted tropical storm warnings for the Bahamasand Turks and Caicos Islands, but kept them in effect for parts of North Carolina.
Erin was located several hundred kilometers southeast of North Carolina and was moving northwestward.
“This means there is a risk of potentially life-threatening flooding of 60 to 120 centimeters above ground level,” said NHC Director Michael Brennan.
He also warned of the possibility of destructive waves, combined with storm surge, that could cause severe damage to beaches and coastal areas, making roads impassable.
International
Three U.S. Warships deploy near Venezuela to combat drug trafficking
Three U.S. naval vessels are moving toward the coasts of Venezuela, according to international media reports on Tuesday, after White House spokesperson Karoline Leavitt confirmed that President Donald Trump is ready to combat and curb international drug trafficking.
Reports indicate that the ships will reach Venezuelan waters within the next 36 hours as part of a recent U.S. deployment aimed at countering international narcotics operations.
The announcement coincides with Leavitt’s statement that Trump is prepared to “use the full extent of his power” to halt drug flows into the United States. The naval deployment involves approximately 4,000 military personnel.
“The President has been clear and consistent. He is ready to use every element of U.S. power to prevent drugs from flooding our country and to bring those responsible to justice. The Maduro regime is not the legitimate government of Venezuela—it is a narco-terror cartel,” the spokesperson said during a press conference.
International
Cuban authorities free salvadoran convicted in 1997 hotel bombing
Salvadoran national Otto René Rodríguez Llerena was released after serving a 30-year prison sentence for his involvement in a terrorist attack at a hotel in Cuba in 1997, the Cuban Ministry of Foreign Affairs reported.
During his trial, Rodríguez Llerena admitted to placing an explosive device at the Meliá Cohiba Hotel under the orders of anti-Castro exile leaders. He was arrested the following year when he returned to Havana with another load of explosives that failed to detonate.
“The Cuban government reiterates its commitment to combating terrorism, respecting human rights, and the need for the international community to hold accountable those who promote such acts,” the statement read.
He was released on August 15 and is the second Salvadoran to complete his sentence. In December of last year, another Salvadoran, Ernesto Cruz León, was released after planting bombs at tourist centers, one of which killed an Italian tourist identified as Fabio Di Celmo.
A third Salvadoran, Francisco Chávez Abarca, also received a 30-year sentence from Cuban courts in 2010 after being extradited from Venezuela through Interpol for actions against Cuba.
Rodríguez Llerena had requested conditional release in 2016, arguing that his actions had not caused any direct fatalities, but no further information was released about his situation until now.
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