New currency expression will simplify transactions
The economist José Ricardo Salazar considers that an economic recovery plan associated with the reconversion process is necessary, because otherwise there will be no positive results
A few days before the third monetary reconversion in Venezuela, the economist José Ricardo Salazar points out that the single advantage that this new change brings is the simplification of transactions. He assures that payment processes will be facilitated because it will not be necessary to include the number of zeros “that the machines no longer support, and that will make operations faster.“
Salazar argues that this process must be accompanied by a “robust economic recovery plan because otherwise Venezuela will not get out of the situation it is in.” Reconversion by itself and in isolation will not “yield positive results for the country,” he said.
He emphasizes that the loss of the value of the currency is currently very accelerated, which complicates and exacerbates the reconversion that will take effect on October 1st. The economist recalled that the first conversion process was in 2008 and ten years later the second was carried out.
However, just three years from later the government has to apply the elimination of zeros to the currency again. “It may not last even two years due to the loss of value of the currency” that is occurring in the country.
For Salazar there is no kind of expectation because the country has “two serious problems. First, the fall in gross domestic product for 25 consecutive quarters and hyperinflation. That is not going to be solved with the makeup they are trying to do by taking 6 zeros out of the coin,” he pointed out.
M. Rodríguez
Source: primicia.com.ve
