Money suffers a continuous devaluation from which people must protect
This was stated by Jorge Kamenar, manager of corporate finance and investment strategies of Intelinvest
The manager of corporate finance and investment strategies of Intelinvest, Jorge Kamenar, explains that it is important to distinguish high inflation and differentiate it from a hyperinflationary process. The specialist adds that although economists have not yet defined exactly how this phenomenon is distinguished, most agree that it is identified by a month-on-month inflation greater than 50%.
For the expert, other characteristics and behaviors that distinguish hyperinflationary processes are that prices increase above the money supply. Likewise, the currency markers of goods and services remain stable, the price of local money is boosted or loses any kind of guidance and, in addition, the nominal value of money is pulverized.
Venezuela has been undergoing a hyperinflationary process for 10 months and this economic phenomenon causes depression in financial development. In the face of such a scenario, it is important to know how to protect yourself so as not to suffer negative economic consequences in the short and long term.
Kamenar recommends creating a budget in which to establish which are the priority expenses at personal and business level. On the other hand, spend the bolivars as quickly as possible, but without forgetting step number one. It is not about spending on anything but on what is really needed.
Also, get a debt in bolivars, through the credit card or a bank loan and to finance the debts for as much time as possible. Do not take debt in foreign currency is another reccomendation. Finally, find a meaning or end to your money. It should not be left inoperative because it loses its value.
The manager of Intelinvest highlights the relevance of financial and investment advisers, given that “talking to someone who has experience in the subject” allows studying the particular situation of each individual or organization. And with it knowing which are the best options to protect themselves from the continuous devaluation suffered by money.
Source: Doble Llave
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