Venezuelan liquidity registers its lowest weekly rise
According to data from the Central Bank of Venezuela, monetary liquidity was Bs 4,49 billion as of April 5, which represents an increase of 5,15% with respect to the previous week but the lowest weekly growth since November
According to these data, the increase in the amount of money in circulation accumulates two weeks in less than two digits. This behavior was not evident in the country since March due to blackouts and electricity rationing.
However, so far in 2019 there has been an increase of 417.5%, as opposed to the 259.1% that represented the same period of time in 2018. For its part, the government of Nicolás Maduro has tried to contain the inflationary explosiveness of the injection of money thanks to the drastic legal reserve policy.
It is worth noting that since February, the Central Bank of Venezuela (CBV) requires financial institutions to place a marginal reserve of 100% and an ordinary reserve of 57%. This measure affects the ability of banks to grant loans and limits business activity.
The proportion of cash in circulation increased slightly from 5.13% to 5.22% in the week of April 5. But the figure is still below that required by the Venezuelan economy and specialists place the figure between 10% and 12%.
In the current year the amount of cash in the hands of the citizen has increased by 259% what shows insufficient bills against hyperinflation has even generated a spontaneous desmonetization of low denomination bills.
L.Sáenz
Source: Bancaynegocios
