Devaluation of the bolivar promotes payment alternatives in the commercial sector
Coffee is used as local currency in Portuguesa, Venezuela, by merchants who have decided to pay for services and products with grams and quintals of the product
The devaluation of the bolivar, the legal tender in Venezuela, has boosted creativity among the merchants of the Monseñor José Vicente de Unda municipality, Portuguesa state, who have adopted coffee as their local currency.
In an interview for Fedecámaras Radio, the president of the Chamber of Commerce of said municipality, Emmanuel López, indicated that the merchants adopted the payment of goods and services through grams and quintals of coffee.
The main reason for this measure is the constant devaluation of the national currency, the bolivar, which affects the activity of merchants.
“Due to the economic conditions, exchanges were made for different necessities… properties and cars are also traded with our currency: coffee,” López declared.
He stressed that the producers of the area in the Portuguesa state support the idea of ”converting coffee into an official local currency and giving it legal legality.”
They are fully aware that the price of coffee is based on the New York Stock Exchange rate.” So by establishing it as local currency, they add value to the item and thus “protect producers even more.”
M.Pino
Source: finanzasdigital
(Reference image source: Unsplash, in collaboration with Getty Images)
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