The Venezuelan opposition asks to postpone the monetary reconversion

[Juppitèr]

The conversion is scheduled for next June 4 and will be the second in 10 years. The opposition believes that it will cause economic chaos.

The head of the Finance Committee of the National Assembly (Congress) of Venezuela, José Guerra, asked this Monday (05.28.2018) to postpone the planned monetary reconversion within a week, in order to put a new family of bills into circulation with three less zeros in the middle of hyperinflation.

The economist and opposition leader warned that if the government continues in its efforts to start the monetary reconversion will cause a chaos in the economy.

"We must postpone the monetary reconversion." With only seven days to go into effect the new monetary cone (family of bills), scheduled for June 4, has not yet reached the country a single ticket and the worst, if it had arrived, there is no time to distribute it, "he told reporters.

The reconversion is scheduled to start from next June 4, which will be a banking holiday. This will be the second monetary reconversion in 10 years.

Economic chaos warnings

The Finance Committee has warned on several occasions about the advisability of postponing the measure and accompanying it with an anti-inflationary plan, given that inflation has climbed to 14,000 percent in the last 12 months, according to the National Assembly.

Guerra said that the government will be responsible for the economic chaos that could arise if it continues with the reconversion. "The Finance Committee has already warned in advance the inconvenience of applying the conversion to hyperinflation, because in January 2019 another conversion would have to be applied, as the notes would quickly lose their value," he said.

The crisis of Venezuela