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Unbridled inflation causes currency shortage in Venezuela

September 18, 2013

This has got to be a cash-handling logistics headache for ATM operators in Venezuela: With the country's economy reeling in a state of hyper-inflation, the central bank doesn't have enough banknotes to go around.

A report by Quartz said that, as of August, Venezuela's annualized inflation rate was 45.4 percent — up 323 percent since 2008. The country's highest banknote denomination, the 100 bolivar bill, is currently valued at $15.

"The bill was worth a lot," one local told La Nación. "It was complicated to use because no one had enough change for it, but now if I want to buy bread, milk or cheese at any bakery I need it in my wallet." 

The proportion of 100 bolivar notes has gone from 3 percent of Venezuela's currency in 2008 to 23.6 percent today. Despite tripling the number of 100 bolivar notes in circulation since 2010, the central bank can't keep up with demand.

According to Quartz, Venezualans are now calling for 300, 500 and even 1,000 bolivar bills to reduce the wads of cash in their wallets.

Read more about cash management.